Credit Card Disputes
Top Credit Card News!
We all would love to obtain credit cards with no fees at all, but somehow those plastics we use almost every day have so many various fees and charges that it's getting difficult to manage them.
Typically, when applying for a card, customers pay attention mostly to an interest rate and an annual fee if there's any. But somehow, they overlook numerous hidden fees that may cost them dear. To be more exact, they cost millions of dollars a year. Read more and learn how you can identify and avoid hidden fees and surcharges.
Click here to read more...Like it or not, in today's world a credit card is a must-have for every customer who tries to go with the times. Gone are the days when cold cash prevailed, these days plastics are undisputable leaders, and if you've got long-term plans concerning your financial well-being, a credit card happens to be a great financial tool for building your credit score.
When it comes to first credit cards, college years may be the right time to start your credit life. The great thing about student credit offers is that they are designed to meet wants and needs of youngsters, they give an excellent opportunity to start establishing credit history when still in college. All the more so, there's no shortage of these deals in the credit market, so that you can easily take advantage of a credit card for students!
Click here to read more...For those people who are carrying heavy debts, a balance transfer game can save a large sum of money. However, this game can be a tricky one. On the one hand, you can take advantage of teaser rates and pay off your debts during the introductory period, on the other, you may end up paying much more than you expected. A balance transfer can be a smart idea and you can easily eliminate your debts. But before you take this step and shift your debt onto another card, you should know the rules of this balance transfer game.
Click here to read more...It would be great to apply for the card that requires no interests to be paid. Unfortunately, it's not possible. You will pay interests on a credit card, regardless of your credit history. The only difference here is how much you will pay.
Though there are no such plastics in the US, many issuers offer 0% APR for a specified period of time. The length of the introductory period ranges from six months to twelve or fifteen months. Anyway, you've got enough time to benefit from interest-free period and save a round sum of money in interests. Learn how to make the most of the cards with 0% introductory interest rates.
Click here to read more...Credit Deals: Fed Reserve Would Ban Unfair Practices
The Federal Reserve has approved the proposal that would ban some notorious credit practices. It's also worth mentioning that the U.S. Office of Thrift Supervision as well as National Credit Union Administration also approved this proposal. Three regulators plan to finalize the rule by the end of 2008.
While consumer advocates consider this proposal as good first steps that will help get some deceptive credit practices under control and make it easier for cardholders to handle their accounts, creditors bristle they will raise credit costs and as a result make credit less available.
Fed Chairman Ben Bernanke said that the proposed rules would establish a new baseline in the way credit cards operate. The point is, today a great many consumers are relying on plastics and unfortunately it has some dramatic consequences, like heavy credit debts, filing for bankruptcy and others.
The proposal offers reforms dealing with abusive practices like universal default, double-cycle billing, and others. So, let's take a closer look at the proposed rules and learn how they would affect consumers.
The malicious tactic of universal default is the one that stings a great number of consumers who have no idea that they've done something wrong. Under universal default, a card issuer can raise your ongoing interest rate as their decision will be based on your credit performance with other issuers.
Last year lenders declared they backed this practice away. However, they managed to find another way to penalize customers, i.e. raising credit card rates when cardholder's score drops. This way, they can double or even triple consumers' interest rates.
Grace period on your credit card is also of great importance. Most probably, you've noticed that some issuers have a tendency to shorten them so that it's getting more difficult to be on time with credit card payments. Under the new proposal, creditors must give you at least a 21-day grace period.
Double-cycle billing is another complex tactic. Most cardholders just ignore it, as they don't understand the principle of credit card billing. To cut it short, the issuer figures your interest rate over the previous two months so that even if you have paid off the entire balance, you still have to pay interests the next month. Under this proposal, this practice would be prohibited.
This proposal would also prohibit a tactic in which lenders apply credit card payments to the lowest-rate balance first. Oftentimes, it results in multiple interest rates on your plastic. Let's say you've got a card with an ongoing APR of 15%, and a small promotional rate on the balance you've transferred from another card. So, when making credit payment, your issuer will apply it to the lowest-rate debt first and it generally ends up in accruing high-interest debts. Under the new proposal, you could require your lender to apply your payment to the high-rate debts first.
Financial experts share the opinion that there will be some compromise between Fed Reserve regulators and bankers. Anyway, it's a good chance to regulate the practices that led thousands to financial troubles.
| If you have something to say, please leave your comments below. |
