Credit Cards have been a great tool for convenience and expanding one's personal credit. Enhanced security and easy access to multiple lines of credit have made credit cards an easy choice by many. Big corporations have formed an alliance with consumers and their plastic card. Companies such as Visa, MasterCard, American Express and Discover offer wonderful incentives to attract young customers who hope to start building their credit and continue business onward. All the attractive offers seem glamorous at first, but the fine print may lead you elsewhere.
There are many things that the credit card companies and banks do not want you to know. High interest rates and increased available credit make it hard to pay off debt that accumulates over time. New government laws have regulated credit card companies and how much they can control the interest rates of consumers with large amounts of debt. On May 22, 2009, President Obama signed the Credit CARD Act of 2009 which prevents credit card companies from imposing skyrocketing interest rates on consumers. This will allow the people to make timely payments and avoid the hidden fees that lurk within the fine print.
The new credit card laws consist of many changes. According to creditcard.com the new changes include limited interest rate hikes, limited universal default, right to opt out, limited credit to young adults, more time to pay monthly bills, clearer due dates and times, highest interest balances paid first, caps on over-limit fees, no double-cycle billing, subprime credit cards for people with bad credit and present an outline of consequences making minimum payments overtime. The new laws benefit all members with credit cards and ways to pay off debt.
Credit Cards have a lot to offer small business owners that are trying to access credit/funds very quickly. Banks and loans go through a process that can be time consuming. Credit cards can be helpful to the entrepreneur that needs to make purchases for their business quickly. Consumers using credit cards can be rewarding by offering bonuses on purchases such as gas, groceries and restaurants. Individuals that pay off their balance each month are going to have the best credit rating. Better credit ratings will lead to better bank loans, job prospects, car insurance, mortgage rates, cell phone rates and other credit cards. Credit cards offer more security and fraud protection, than debit cards and provide more incentives to use credit on a regular basis. Always remember it is much easier to dispute a charge on credit than debit cards. Be careful of high interest rates and make sure you know what the fine print states before signing up for a new credit card. Credit cards can be intimidating at times, but can offer many benefits when making the wise decisions.
Sources:Prater, Connie. What the new credit card law means for you. June 20, 2010./credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php
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