New Credit Card Rules
Nowadays just about everyone has at least one credit card. But how many people really know how credit cards work? You might know about late fees and interest rates but those are actually the tip of the iceberg when it comes to credit cards.
Very recently, a new legislation regarding credit cards has been introduced. If you are interested in what this new legislation allows card users to do then you should carefully read on.
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One of the most important changes that has been made is having the credit card companies give their clients a heads up regarding their interest rates being raised. Knowing that there are a lot of people out there for whom an interest rate increase would mean changing their monthly budget, this is very good news as they will now get roughly two months notice before the rate increase happens. Also, going over your credit limit will now require your express permission as banks can no longer decide on your behalf.
Another change in the legislation makes the banks handling the funds for your cards send you your monthly billing statement no later than 21 days before it is due. So if you had trouble in the past due to punitive late fees, now this can be avoided by always getting the bill on time.
Other great news regarding this legislation is that there will no longer be late fees due to banking weekend or holiday hours. What this means is that if your due date is on a Sunday, you will not get penalized if your payment doesn’t go through until Monday.
As a consumer, you now have the right to close your account if there are certain conditions and changes you dislike regarding your account. If you choose to do this however, you will still have to pay off the balance within the allotted five years under the terms of your contract agreement.
This new legislation has consideration for the younger generation as well. Under the new legislation, card companies will have to stay away from the younger people as they are not allowed to issue credit cards to anyone under the age of 21, unless they can prove they have the ability to repay the debt, or they have a cosigner, over age 21, who has the ability to repay the debt. This way they get protected from being in debt at a young age, although many younger individuals may get irritated about this policy this.
In conclusion, your credit card costs should be less but this doesn’t mean that you don’t have to pay on time every month.