Few Tips About New Credit Card Law
The new law for credit card users and providers will take effect this week. While it is quite beneficial for the users, credit card providers definitely aren’t happy. Hence, they will attempt to rip off your wallet through other sources. So, it is advisable to be very vigilant especially for the next few months to avoid being stripped.
According to the Federal Reserve Board, the new credit card law obliges credit card providers to inform customers about any major change in the terms, at least 45 days in advance. Overdraft facility, which was initially provided by default, will now be optional and not automatically assigned. Hence, if you shop for something that exceeds your credit limit, it would be denied. And obviously you won’t be charged any fee.
However, this new rule wouldn’t keep you safe from the clutches of these plunderers. Hence, here is a list of few tips that you will need after the rule is applicable.
- Go for Fixed Rates :
According to the new credit card law, companies cannot change or increase the interest rate of your card without prior notice. However, the law wouldn’t protect you if your card comes with a variable rate conditions or if it is an introductory offer for few months. If possible, try to avoid such cards and stick to the ones that offer fixed interest rates. - Understand Reward Programs:
With a curb on their most reliable income source, credit card companies are now deriving various other methods to earn profit. Award programs and other such services can actually benefit them more than it will to you. I am not restricting you to avail such services. However, make sure you understand everything before you go for such programs. - International Use :
This new credit card law has been introduced for American population and is applicable with the premises of the US. However, it wouldn’t stop card providers from levying stiff fees, if the card is being used for international transactions. This can happen with or without traveling physically out of the US. If the item you bought only is provided by an international vendor, you will be charged with some additional fees. However, not every company will levy such fees. Hence, learn these policies before you go for a credit card.
Perhaps these are just three things I am aware of, that can be a reason for additional fees. However, there may be numerous other ways that a credit card company might use to exploit you and the new credit card law as well.
This law is seriously a cracker for all credit card companies. This is very beneficial for all the credit card user.
Overdraft by choice and not mandatory. This is really cool. Banks were gaining the maximum profit out of it and now its been barred! No overdraft no fees.
This is a very good law of informing any major change 45 days prior of changes to be made.
Credit card users will be so happy after implication of all these rules. They will be able to use it freely and also there will be less number if defaulters.
I’m happy for all the laws. Now credit card companies or banks won’t be able to cheat or trick any of the consumers.