January 14, 2010
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News: BBB Offers Tips for Cardholder Protection
By this time, most Americans are fully aware of the new Credit Card Accountability, Responsibility, and Disclosure Act 2009 that will become effective on February 22nd. Experts expect that most lenders will increase interest rates prior to the enactment date. The Better Business Bureau (BBB) is concerned that the action will foster a new wave of credit card scams as cardholders seek out lower interest rates in response to the rate increase. The BBB has offered some tips to Americans on protecting themselves from opportunists looking to steal personal information for use in credit card and identity fraud. An example would be a criminal calls posing as a bank employee and promises to get you a better deal on interest rate.
Start your journey by calling your credit card company: Banks have acted with little rhyme and reason when raising interest rates, therefore, even though you might be a prime customer with an account in good standing, your interest rate may be increased. Begin by calling your credit card company and telling them you believe your interest rate has been raised in error. Some lenders are willing to negotiate lower interest rates to cardholders with a responsible payment history.
Consider opting out: If you aren't willing to accept the new credit card interest rate, you'll have the option of opting out. Opting out would mean that you continue to pay the current balance off at the current interest rate, but if you use the card for any new purchases, the interest increase will automatically kick in.
Shop around for a new deal: Consider opening up a new credit card account with a different lender. Some lenders offer low introductory rates that may be helpful in paying down the balance quicker. Compare card offers online.
Pay your bill on time: Cardholders who consistently pay their bill late are typically the first to receive credit card interest rate hikes. The BBB advises all cardholders to manage their credit responsibly to avoid sudden interest rate increases.