Leadpile’s Blog

Some recent laws passed regarding our credit cards are taking effect this Thursday. Currently credit card issuers have an ability to change interest rates on existing balances without any sort of notice. Part of the new law taking effect Thursday will put a restriction on the credit card companies from doing this without a 45 day notice. They can still charge you penalty fees for late payments and over-limit charges, however being able to freely increase the percentage rate (fixed rate percentage) on an already existing balance, will be going away. Any change to our interest rate, late payment fees, over-limit fees or finance charges can still increase, but they have to now give us a 45 day notice. It seems that a lot of credit issuers have recently become very aggressive in even shutting down card holders cards if there was no activity. There is a potential “risk” involved to the credit card issuers, and they are scrambling to get rid of those sorts of consumers. The other thing that we are all witnessing is the credit card issuers reducing balances on our credit cards if they are not being utilized. Once again, this is the credit card issuers reducing their “risk” or potential exposure, however it is very much an inconvenience for many people that want to then utilize their credit cards for a larger purchase.
Reading over anything that comes in the mail from your credit card company is probably the safest thing to do to keep up to date on what is going on with your account. Maybe even utilizing your credit card randomly might even be a good idea if you want to maintain the credit card availability. That sounds a little odd, because the “right” thing to do is really maintain a debt free life and live within your means. The credit card companies are almost indirectly pushing Americans to use their cards… or LOOSE them.