The New Credit Card Act Of 2010: All Business

There have been quite a few benefits that people are starting to see with respect of the New Credit Card Act since it took effect February 22 2010

. The new rules require that credit card companies give you more advance warning before raising your interest rates - at least 45 days, up from 15 days previously. Also, they have to mail your bill to you at least 21 days before the due date, up from 14 days, giving you more time to pay and making it less likely you'll suffer late fees due to mail delays.

Such changes these are just the first of a flurry of new card holder protections under the new Credit Card Account Accountability Responsibility and Disclosure Act (CARD), enacted earlier this year. Others, including a ban on Annual Percentage Rate (APR) hikes on existing balances. This also limits on charge card companies ability to charge over-limit fees.

However, most people know that not all is well and good. One of the major downsides of these changes is that credit card fees likely to increase. To make this point clearer; many companies are trying to get a jump on the new law by jacking up rates and fees already. In fact, if you've received any mailings from your credit card account company in the past few weeks, it is advised to look it over carefully as it could contain some unpleasant surprises. It is very important to keep a close eye on your credit card bills as the changes are being made in the coming year.

Be alert for any notifications of changes in your credit card terms. Many often ignore the onslaught of mail and junk. Oh how would it be simple to just hit the ignore button and make all the brown envelops disappear. All kidding aside, it is very important to read your bills and be mindful of any changes that will occur.

Many expect that credit card account companies will try to counter the new regulations with creative new rules of their own or devise new tactics to gain revenue for lost revenues. Higher interest rates are likely for many; you may also see your charge card account issuer going to a variable interest rate program where the interest rate on your card fluctuates. You can also expect to see fewer rewards programs, as well as many cards that are currently no-fee may adding annual fees in the near future. Again this is only a part of the banks and the credit industry's way of fighting back for their profit. The poor dears! And yes, that was a sarcastic comment, shame on us!.

Fear not o ye who are in the good books of credit - you have not been forgotten. We are talking to you dear customer who regularly pay your credit card balance in full every month. You along with other good customers like yourselves could get hit with unexpected fees. Such things may include service calls that involve a live employee, balance transfers, cash advances and other crafty tricks to keep the dough rolling for the credit industry.

Reducing credit limits may occur as well. A lower-than-expected limit could put you at risk of an overcharge if you make a major purchase following a reduction. If this wasn't bad enough, a lower credit limit on a card where you've been carrying a balance could have a negative effect on your credit score, if the reduction means you're using up most of your available credit on that one card. It is advisable if you have more than one credit card to spread it around several cards. If you only have the one credit card, try your hardest to reduce the amount owing as quickly as possible.

Despite the changes, many will say that the best way to avoid getting burned by new fees and APR's , the same old advice applies: avoid carrying a high monthly balance on your card. Pay off your balance each month, if possible. But bear in mind that with the new way of bettering your credit history and score, it is actually good to keep a small balance every month, so that the credit bureau sees some activity and creates a positive credit record and deepens your credit history.

We hate to sound repetitive, but this could mean you will have to adjust your spending practices for your credit card if you want to get ahead the eight ball when you are dealing with the new credit card act. Make no mistake, the credit card companies and banks will always have many steps ahead of you. It's just that you do not want to fall way behind them.

by: Teeny solomon

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