Your Credit Card is Canceled

Credit Cards

Possibly without notice..

You may be aware that many new laws protecting consumers when dealing with credit cards have recently been passed.  Credit card companies, for example, are now required to give customers a 45 day notice before making significant changes including changes in interest rates.

However, canceling cards without warning is allowed.  Is this not a significant change?

Credit card companies say that, if they warn consumers that their card is going to be canceled, the user could run up the card balance and never pay it leaving the issuer on the hook.

It is required that you get notice of the cancellation, eventually, just not necessarily before it happens. You must be given notice within 30 days, which could create some very embarrassing moments at the cash register.

None of us should be dependent upon credit cards, certainly not now more than ever.  Pay down your balances because, more big news, interest rates are going to continue to go up on credit cards next year and, if you have large balances, you may never get them paid off.

Pay down and pay off your cards.  A good 2010 resolution may be to use them less and less.

New Credit Card Laws go into Effect August, 2009

Credit Cards

On May 22, 2009, President Obama signed the Credit Card Accountability,Responsibility, and Disclosure (CARD) Act of 2009. “Just as we demand credit card users to act responsibly, we demand that credit card companies act responsibly too,” he said before signing the Act. Do you know what it says and what it means for you?

The purpose of the bill is to amend the Consumer Credit Protection Act, to ban abusive credit practices, enhance consumer disclosures, and protect under age consumers among other things.

Several new rules to curb some of the worst industry practices go into effect this month, August 20th. Most of the provisions kick in next year. The requirements under the CARD Act become effective in 3 stages.

What are some of the requirements?

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Credit Cards for finanacing deals?

Credit Card photo

How many ways are there to raise funds for deals? Many. Have you ever used your credit cards for cash advances? This is one quick way to get the financing you need.

There are a number of important things to consider here. Some of those include: What is the interest rate on the cash advance? How long can you use it? What is the fee to do the transaction?

When you get the offer in the mail, it can be very tempting. I just got a great 2.99% for a year with a cap on the cost of the transaction at $250. I took it and will use the money for a year. Where else can I get money at that rate? And I got a good sized chunk.

However, I have learned the hard way some pit falls to watch out for. First, of course, always make your payments on-time; early is better. If you’re late on any, you’ll pay the higher interest rate on the entire amount you borrowed for the entire time you’ve had it. All deals are off.

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