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How Credit Card Rates Change -- and What You Can Do About It
Boone, NC
Thursday, December 24, 2009
How your credit card rates can balloon out of control, and what you can do to try to stop them
If you're like many other consumers in America, your credit card rates may have increased this year. They may have increased last year, too, and they may increase again. Why? Because up until now, credit card rates have been more or less ungoverned, leaving the credit cards free to do whatever they want.
You won't believe some of the rate hikes and fees credit card companies come up with. The good news is, you're not powerless: as the consumer, you hold the power.
High credit card rates and your response
First of all, some good news: the government has instituted the Credit Card Reform Act, which took effect in May 2009, and curbs some of these abuses. But in the meantime these companies are running free, and here are some of their games:
Charging you for not using your card
Yes, you read that right. An increasing number of cards have inactivity fees where you pay for the privilege of not charging anything to your account.
Sudden and unregulated increases in credit card rates
This can mean a sudden annual fee where one didn't exist before, a sudden surge in your minimum monthly payment, or even a large interest hike. Companies are now required to provide you with notice before they do this, but they can still pull it off.
Closing your account altogether
For no apparent reason, a large number of credit card companies are deciding to reduce their client base, which basically means contacting a bunch of their customers and saying, 'Hello, you no longer have an account with us -- have a nice day.'
What to do
The first trick is to notice when these changes occur -- read the fine print, and keep up with any changes your card might make. If you notice changes you don't like, immediately call the company and protest, pointing out that you've been a valued customer. If worse comes to worst, threaten to leave the company.
And follow through on that threat. There are a lot of credit cards out there, and you don't have to settle. Find a card that offers the best credit card rates and the best service, and don't take any nonsense from any of them.
For more tips on the best credit cards, saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources.
If you're like many other consumers in America, your credit card rates may have increased this year. They may have increased last year, too, and they may increase again. Why? Because up until now, credit card rates have been more or less ungoverned, leaving the credit cards free to do whatever they want.
You won't believe some of the rate hikes and fees credit card companies come up with. The good news is, you're not powerless: as the consumer, you hold the power.
High credit card rates and your response
First of all, some good news: the government has instituted the Credit Card Reform Act, which took effect in May 2009, and curbs some of these abuses. But in the meantime these companies are running free, and here are some of their games:
Charging you for not using your card
Yes, you read that right. An increasing number of cards have inactivity fees where you pay for the privilege of not charging anything to your account.
Sudden and unregulated increases in credit card rates
This can mean a sudden annual fee where one didn't exist before, a sudden surge in your minimum monthly payment, or even a large interest hike. Companies are now required to provide you with notice before they do this, but they can still pull it off.
Closing your account altogether
For no apparent reason, a large number of credit card companies are deciding to reduce their client base, which basically means contacting a bunch of their customers and saying, 'Hello, you no longer have an account with us -- have a nice day.'
What to do
The first trick is to notice when these changes occur -- read the fine print, and keep up with any changes your card might make. If you notice changes you don't like, immediately call the company and protest, pointing out that you've been a valued customer. If worse comes to worst, threaten to leave the company.
And follow through on that threat. There are a lot of credit cards out there, and you don't have to settle. Find a card that offers the best credit card rates and the best service, and don't take any nonsense from any of them.
For more tips on the best credit cards, saving money and avoiding getting taken, check out CreditCardWhizKid.com, a website that specializes in providing credit card tips, advice and resources.
Sean Masterson
CreditCardWhizKid.com
Boone, NC
815.642.0460