subject: Bad Credit Repair - Credit Card Bankers Trick Card Users! [print this page] New credit card consumer protection laws will NOT stop banks from stealing your money. Grab hold of your wallets and pursesyour bank is coming for more of your money.
The so-called epic Credit Card Act of 2009 simply has shifted how banks will attempt to steal your money. Please follow along closely, as we take a look a the 5 good and bad points of this Credit Card Act.
#1. Limit Retroactive Rate Increases. While this sounds great in theory, don't get overly excited. Credit card lenders can still raise your rates on a new balance at any time with 45 days notice.
#2. Revised Rate Hike Notice. As mentioned above, longer notification is now in effect for rate hikes, which provides 45 days notification rather than the former 15 day notice. However, this provision does not apply to credit limit changes so be sure to keep an eye on total available credit!
#3. Restricts Under-Age Credit Consumers. If you're under 21, you won't get flooded with credit card offers...without a cosigner that is. I'm sure this will inconvenience some, but for many parents this is needed. Plan to prove income as well if you want the credit.
#4. Does Away with Double-Cycle Billing. A nice touch but to offset losses, many credit cards intend to increase fees especially among those that pay their bill in full each month. Paying on-time each month will not be enough. If you fail to generate enough PROFIT for your card issuer (or card issuers) you will pay an annual fee for the privilege of using the card. No free rides.
#5. Establishes Minimum Monthly Payments. Trying to use credit as cash w/o payments is no longer. Under this legislation, you now must make minimum monthly payments during the interim. Interest rate charges can still be waived, but the federal government now demands consumers make some type of payment each month. Additionally, your credit card statement now will state clearly how long it will take you to pay off your balance making just the minimum monthly payment. Be prepared to scream when you see this date, if you typically pay just the minimum.
For years, too many people have lived off credit cards, either by choice or necessity. Other people who have managed their credit (cards) wisely will discover their credit limits have been slashed 50%, dropping their credit scores by as much as 75-100 points. They did nothing wrong. They didn't pay late. They didn't default on any other payment. They became collateral damage for banks quickly and ruthlessly reducing its risk - slashing credit limits across the board. Ouch! I hate to be the bearer of bad news, but the days of living on credit are ending.
Please before you lash out in a fit of anger, vowing never to do business with greedy banks do not cut up your credit cards. Once you calm down, review the cards you have:
1. Which card or cards have you had the longest?
2. Are they credit cards or department store cards?
3. Do they report to all 3 bureaus?
4. How is your CREDIT LIMIT reported? If theyre department store cards, confirm that your balance is NOT reported as the credit limit. Warning: most department store charge cards are reported that way to the BIG 3 credit reporting agencies. Pay them down or off and then use each one occasionally for something you MUST buy, not something you feel compelled to buy just because you have a card in your pocket.
5. Keep your oldest cards and use each one occasionally use your Visa/Mastercard for groceries and gas & pay them off each month. For cards you dont use in 90 days, furnishers stop reporting activity to BIG 3.
You need to keep your credit file clean and good even if you dont want new credit and dont plan to pursue a new job or job promotion. If waking up to banks slashing your credit limit is your worst nightmare, consider yourself lucky not to be the person stuck with $41,258.46 in credit card debt & just slammed with universal default, that is an interest rate 29.9%. How do you avoid this quicksand?
Bad credit repair advocate Mike Payne helps people avoid costly credit tricks and traps. Please don't wait for your credit to get trashed. Get informed now about credit and credit cards. Don't expect your bank to help you. They already have one hand in your pocket as they're pushing you toward their buddies in consumer credit counseling. Hopefully, you never need to repair credit fast to be considered for a new job you desperately need.
