by Jack Lee
The Credit Card Act will take effect in about two weeks. The new rules will make it a lot tougher to surprise you with rate hikes and hidden fees. For instance the card issuer can’t up the interest rate in the first 12 months after you sign up.
If they do change the rate then that new rate only applies to the amount you charge [ after ] the new rate is in effect, it does not apply to your old balance! I’ve always had a problem with card companies doing this because otherwise its like changing the terms of the loan midstream. Well, at least now you will know the rate you’re paying before you charge.
They’ve also made it more difficult to market cards to teens and young adults with little or no credit experience.
Credit card bills must now include how long it will take to pay off your loan with a minimum payment.
Thse changes are the most significant change to credit cards since there has been credit cards, but there is not reason to celebrate. As fast as the reforms to former abuses go into place new ones pop up. The new rules will not change the rules for business and corporate cards.
Even with these changes the best idea is simply don’t use a credit card, use your versatele card, you’ll be a lot better off.