New Credit Card Law

There has been some talk about the new credit card law saving consumers from higher interest rates, hidden fees, and overall unclear terms. Yes, this law does do that. However, this law may also adversely affect consumers as credit card companies hurry to hike rates and move fees around.

Rates will be hiked soon to make up for the fact that companies cannot raise these rates to new holders. Since the law does not cap interest rates, how high will these rates get? It is important to pay off your debt fast as any late payments will be met with a higher rate.

Annual fees are going to be likely for most card companies now. This will make up for the fact that they cannot raise rates on new holders for a year. The annual fee makes up for the percentage difference. Fees will also rise for cash advancements, transfers, and late payments. Some companies are even considering getting rid of their grace period.

At any rate, you should be fine as long as you pay off your card regularly. After the crisis we had (and are still in), it is not surprising the companies will be stricter on lending out credit. Be mature with your credit cards and you will be saving cash money.