The Credit Card Accountability, Responsibility and Disclosure (CARD) Act, popularly known as the CARD act, which took effect on February 22nd 2010 and has brought sweeping changes in the original credit card policies. What does it mean and how will it affect your credit card rating as well as the cards in your wallet? Words: 343
In further edited excerpts from the original article* Gladwyn Riggs (www.realestateproarticles.com) goes on to say:
Change #1: Interest Rates
Credit Card Companies are no longer allowed to change the rates for the first year unless it is a promotional rate and even promotional rates must be valid for six months. After that, if they want to increase, they have to give you a 45 days notice in advance. Any rate increases will apply to future balances and not existing balances.
It is now going to be much more difficult to get credit cards since they are going to take a good look at your payment history and whether you have the payment capacity to be able to pay them or not.
Change #2: Due Date
Your payment is now due for payment on the same day every month.
You will no longer be caught unawares of a change in the due date for payment on your credit cards.
Change #3: Over the Limit Fees
Such penalties can now only be charged once per month at the maximum.
Now you will have to opt in for over the limit fee for being charged on it otherwise your transaction will be declined.
Change #4: Finance Charges
Finance charges will be based on when you make the purchase.
If the rate percentage was 12% during your purchase, then that will be the one over the life of your balance. Such a provision is great in a rising interest rate environment but not so in a declining one.