Yes, the title has a double meaning. New credit card rules to be enacted with the Credit Card Act of 2009 will shake up the agreements you have with your credit card company. Because of new rules which will make it harder to increase fees and APRs after cards are issued, issuing companies will be forced to make terms more onerous up front. How far will you let companies go before you cancel?
Increased Rates
One of the paths to profits for the credit card companies is to charge higher fees on balances. The problem with this strategy is it only applies on unpaid balances. If you don’t ever float a balance on your credit card, you won’t have to worry about paying these penalties. It is annoying to have higher rate cards, but if you plan it correctly, it won’t hurt you.
- Time to cancel some of these? (Andres Rueda)
Increased Fees
In another annoying practice, credit card companies can increase fees. Fees range from over-the-limit fees to late fees. Again, these fees are annoying. However, they aren’t mandatory. This is another category where proper card usage won’t hurt your bottom line.
Annual Fees
Another possibility is increased annual fees. Credit card companies could increase the annual fees on credit cards, or even initiate annual fees on others. This one requires more thinking. As these fees generally are unavoidable, you’ll need to take into consideration expected rewards and convenience. If you think you are getting the raw end of the deal, this one is a deal breaker.
So… what would put you over the edge?
Popularity: unranked [?]
Interested in what you see? Click here to subscribe to Don't Quit Your Day Job...Related Posts
- More Fallout From the Credit CARD Act
- Charge It
- Reactions to Credit Card Laws: ‘Consumer Friendly’ Offerings