"If you carry a credit card, you should circle February 22, 2010 on your calendar. That's the day when sweeping provisions of the new credit card legislation take effect. You will be getting some much needed relief as the new law addresses such things as how and when a card issuer can raise your rate (currently issuers can pretty much raise your rate at any time for any reason).
However, the new law is likely to have unintended consequences. Specifically, average card rates and fees are likely to rise in the coming months. So, if you have credit card debt, you should aggressively seek to pay down your debt. Also, issuers are probably going to increasingly target consumers with good credit. If your credit is less than stellar, focus on improving your credit score. Otherwise, you may find yourself with vey limited credit options.
The bottom line is that while there are silver linings to the legislation, it won't be a bed of roses for all consumers...particularly for folks carrying a balance each month and folks that are building or rebuilding their credit."
- Do any credit card companies penalize you if you have zero balance on your card and haven't used it for a few months?
- Does the Credit CARD Act apply to business credit cards?
- I have an excellent record for payments on all my cards, but I'm paying as high as 29 percent interest. How can I lower the rate?