Saturday, March 7, 2009

Credit Card Changes are Coming

What's a Diner's Card?In about a year (July 2010) credit card companies will be making changes. Some will protect irresponsible credit card users and some will protect them. I wonder if this is the right time to mess with perceived purchasing power since so many are unemployed and becoming dependent on credit through necessity rather than whim.

Either way this is what's coming:

1. Interest Rates
Now: Can increase your rate on entire balance at any time, with 15 days written notice.
2010: Cannot increase rate on existing balance if you pay on time. Must give 45 days written notice to increase rate.

2. Late Payments
Now: Late fees apply as soon as deadline arrives
2010: Must make sure you have 21 days to make payment before late feeing you

3. Allocating Payments:
Now: Payments go to lower interest portion of payment
2010: Extra payments go to higher interest portion of balance first

4. Subprime Credit Cards
Now: Security and opening fees for crappy credit scorers can be as much as credit limit.
2010: Security and fees cannot exceed half of the credit limit.

Info adapted from April 2009, Woman's Day. They're wordy and I don't like to type ;)