In the last year or more, credit cards and the laws that govern the industry have come under serious scrutiny due to the large amounts of individuals and families facing serious debt problems involving credit cards. Card holders have been subjected to stiff fees and increasing interest rates for seemingly no reason, leaving many so far behind in payments, they had no where to turn. As the credit card industry began to spiral seriously out of control, Congress finally began to take action on behalf of the affected consumers.
Credit card practices have been unfair and deceptive for quite some time and changes need to be made to continue a healthy economy. In May 2009, President Obama signed into law the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. The action was meant to create more protection for consumers and halt unfair and hidden fees they were being charged for being a credit card holder.
[Read more…] about The Credit Card Accountability, Responsibility, And Disclosure (CARD) Act Of 2009- Effect On Credit Card Holders
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7 Credit Card Tips From ING Direct
I was just on the ING Direct site checking out my savings accounts and decided to check out their tips. They list seven great credit card tips. Check them out (descriptions are mine):
- Make your payments on time – Very important! Late fees can be very expensive on credit cards and can negatively affect your credit score. If you have problems with the due date you may be able to change your credit card due date.
- Try to pay off the full balance every month – Pay off the full balance to avoid any interest charges.
- Avoid cash advances – Cash advances on your credit card have different rates than normal credit. Yeah, it’s gonna be more expensive than if you just charged it.
- Shop around – Compare rates and services from different credit card companies to get the best credit card offers. Find one that fits your spending habits. Make sure to read the fine print as well.
- Use savings to pay off the cards – It’s great that ING Direct exists offering high interest rates on savings but that high rate doesn’t compare with the interest on your credit card (unless you have a low introductory rate).
- If you’d like a better rate, just ask – If you have been a good customer you can call the credit card company and ask for a better rate. Try telling them that you received an offer from another company with a better credit card rate; odds are they can lower it for you. Make sure you understand what the new rate is though. It may only apply to new purchases not your outstanding balance.
- Don’t be left holding all the cards – If you have a lot of cards it means you can do a lot of spending damage. This is bad for both you wallet and your credit score. Get rid of credit cards you hardly use or ask that the credits limits be lowered (a high credit limit can hurt you for some credit card companies).
Of course you should also watch your spending as well. Don’t abuse your card and know what you can really afford.
Do you have any credit card tips to share?
Interesting Credit Card Marketing From AAA and Bank Of America
My wife paid her credit card a couple of days late.
Between work and taking care of the kids (that includes me too) she forgot the exact due date. It isn’t a card that’s used often.
It happens.
Unfortunately we got hit with a no payment fee (about $30) and an interest fee (a couple of bucks). There were no other late payments on the card so I decided to call the company and ask if they can drop the fees. We’ve been good customers and have been paying in full every month.
So I called the number on the back of the credit card.
I go through all of the phone hoops and get to an account person. He asks who I am. I give him my name and tell him I’m calling on behalf of my wife (this is a credit card she had before we were married). The account rep then says he sees my account. My account? This is my wife’s card! It seems that Bank of America is the issuer of the AAA card and since we have a banking account there he could see my account.
So I tell him our situation, that we never pay late and always pay in full, could you drop the late fees? He tells me since I’m not on the account he can’t authorize it. My wife has to tell the rep to put me on her account. So now I give her the phone which kind of defeated the purpose of me calling since she was taking care of the kids, and she gives him permission to add me to the account. Took two minutes maybe. Easy process. I get the phone back and go back to the original question of removing the fees. He looks at the account and says he can remove the no payment penalty but there’s nothing he can do about the interest fee. I press on the interest but he won’t budge. It was a couple of bucks and it was our fault so OK we’ll pay that. At least we got the no payment fee taken off! The whole process was a bit annoying but in 15 minutes we were able to eliminate a $30 charge.
Fast forward a week or so and we get a package in the mail.
Two new credit cards for the account. We didn’t ask for a new card. Since they added me to the account they assumed that I too would need one of their cards.
Hmm…interesting. I guess they want me to start charging on the account too! Now they double the chance of a late payment or interest charges (not really for us but hypothetically)! What they did wasn’t wrong from what I can tell but it annoys me that they automatically sent out another card assuming I wanted it. Very aggressive marketing on Bank of America’s behalf.
This gets me thinking though.
What cards do we have between us? Should we consolidate some accounts with both of us on the accounts? Until now it hasn’t even been a thought. We’re both responsible with our spending and very open with our spending habits. I like the idea of one separate card between us so we can buy gifts for each other without the cost popping up on a shared statement. How can this affect our credit scores? I need to do some research on this.
P.S. To prevent future late payments we signed up for email alerts from the bank that tell us the payment is due in a few days.
Do you think Bank of America was sneaky in sending us another card?
For those married folks out there – How do you handle credit cards between you and your spouse? I’m interested in hearing your stories.
