August 02, 2010
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Managing Under New Credit Card Rules, Pt.1
Final batch of rules rolling out.It's hard to believe that it's been over a year since President Barack Obama signed the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act) into law. Cardholders may not have yet realized some of the new changes, but will shortly as the final batch of rules roles out in two weeks. It is expected that some credit cardholders will experience some immediate benefits with the final stage although some are likely to feel some negative affects as well. This last batch of rules will involve credit card issuers as well as gift card issuers.
Although the new rules look to benefit cardholders, it is expected they will also feel the pains of new fees and penalties established by credit card companies in order to compensate for lost interest rate revenue. Experts say that no matter how you look at it, credit cardholders are going to pay. If the lenders aren't able to generate profits through higher interest and fees, they'll find new and creative ways to do so. After all, banks have expenses also and along with the business come stockholders. Stockholders aren't going to continue dumping money in a company that isn't performing; it's business 101.
So what's a person to do to beat the credit card game. You can begin by doing your homework. Study the new provisions of the law and don't be hasty to accept the first card offer that runs across your table. Thoroughly read and understand the terms and conditions of any card that you are considering applying for. Don't think that just because the lender doesn't charge certain fees at the time of your application; many banks that didn't charge certain fees in the past are likely to begin charging them in the future. If you don't understand the fine print, find someone who does and can explain it to you. Lastly, read part 2 to learn more about the new rules so that you'll have a clearer idea on how they can affect you.