Credit Card Changes For 2010

Major changes are coming to your credit card, as of February 22nd of this year (2010) as to new government regulations. Of course this goes without say that there is a major skeptic that surrounds these changes... and one of the numerous questions from these changes is rightfully asked: Are these changes for the good or for the bad when it comes to us regular folk? Well, let's explore, shall we? We are going to tackle these new credit card regulations from the "good", to the bad to the very ugly.

In the optimists' point of view, the new law protects consumers. It limits how and when banks can raise interest rates and fees. Credit companies are now required to mail your bill at least 21 days before its due date. Credit card companies now must show that the amount you pay over the minimum is used to reduce the portion of your balance with the highest interest rate. Lastly anyone who is under the age of 21 must have a guarantor (a co-signer). This means that fewer credit card companies will be canvassing the grounds of college or university. Actually, this is the better news, because let's face it, students are more likely to overspend their moneys and falling very deep (or deeper) into debt as they go through their school lives. This all sounds good, right? All of a sudden the credit card companies are turning a new lease on life, and not trying to pocket profits? Forgive me if I am not a believer.
Hello peoples... We live in a capitalist society, where most people want to make a profit; especially true of companies such as the credit card industry and banks.

If you take the time and read carefully between the lines, you'll see that the regulations make it more difficult for credit card companies to make money. However, with this in mind, you can be sure the credit industry and the banks will be thinking of new ways to turn a profit. Banks are required to tell you about all of these changes. But you won't know about them if you don't read your mail, BUT the law doesn't prevent banks from dreaming up new fees and charging whatever they floats their boats. And this is already happening. For example, more credit cards are starting to charge annual fees. Wait a moment... haven't we have heard through various commercials that boasts "no annual fee credit card" or credit loans? Others are adding "inactivity fees" for customers that don't charge enough on their cards. WOW, that really bites! So if you don't spend enough on your credit cards, you get spanked; and if you overspend, you get whacked even harder. Lions and Tigers and Bears...Oh my!

In all seriousness, take a careful look at what you get from your credit card company. Because the credit card companies are required to let you know what is happening, they will also try and get a away with long-winded letters, that, quite frankly you and I have little time to properly read over it. Often times the disclosures are lenghty and filled up with financial jargon, that it almost takes a financial expert to interpret any of it. The letter will include disclosures of any changes before they apply. Also, you'll want to read your credit card statements carefully too, to make sure that the additional amounts you pay are actually being applied correctly to your balances. Yes, it is very sad and pathetic, that you have to pay even more close attention to your credit bills. One would predict that you will be on the phone with the Customer Service Rep in discussing your monthly credit statement. But please don't take your anger out on these reps, as they themselves did not make these rules.

Finally, check your balance frequently - since banks can no longer charge over-the-limit fees, many will decline your card if a charge will take your balance over the limit. Yes, the banks and the credit companies will allow you to go over your credit limit, but you have to know fully that you will have a higher mountain to climb when it comes to balancing your credit.