Credit Cards For Less Than Perfect Credit

New credit card laws that will affect credit card users and credit card companies went into effect earlier this year. It seems like good news for credit card users. I am just saying this because the credit card companies are upset about the new laws. So, trust me they are hard at work this very moment trying to figure out ways to take advantage of the new laws or try to stick it to credit card users another way. This means you might want to at least understand the basics of the new credit card legislation and be prepared to bend over when the dust settles. Here is a basic look at the new laws.

• Your credit card company must now let you know 45 days ahead on time if they are going to increase your credit card rate, change most credit card fees or make major changes to your credit card account. Your credit card company does not have to let you know about increases on credit cards with variable rates or if you got a new card with a special introductory rate and the time period for the promotion is over.
• A credit card company may not raise the rate on your credit card until one year from the start of your credit card account. There are rate increases that are excluded from this rule like when you have a variable rate credit card or you are more than 3 months late on your credit card payment.

• Now they cannot raise the rate on your entire balance. They can only increase your rate on things that you charged after the increase that took place after one year has passed.
• You must choose or opt-in for charges that go over your limit. The credit card company must decline charges that go over your limit. They cannot allow the charge to go through then charge you extras fees unless you want this option on your credit card. Also they can only charge one over the limit fee per 30 day period and if you want out of the program you can get out of it at any time.
• The card company must indicate on your monthly bill how long it will take for you to pay off your card if you only make the minimum payment. The credit card company must also what is the amount you should send in if you want to pay off your balance in three years.
• Those who are under the age of 21 will need a cosigner if they cannot proof that they can make the payments on a credit card they are applying for.
• There is now a limit on the fee a credit card company can charge you. That limit is 25% of your starting credit limit. So if you are starting credit limit is one thousand dollars your fees for your first year cannot be more than $250. This does not include late fee or penalties.
• You must receive your credit card bill 21 days before your bill is due.
• Your credit card cannot be double cycle billed, interest can only be charged on what is owed on your current billing cycle.

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