Credit and the General Population: How the New Rules Could Change Your View of Credit

For a long time now the way that we have borrowed or used our money has drastically changed. Whether it means that you can’t get <a title=Learn More About Small Business Loans at Innuity Funding! Href=http://innuityfunding.com/page/1ny5i/Resources/Small_Business_Loans.html>small business loans</a> like you used to or that <a title=Learn More About a Line of Credit at Innuity Funding! Href=http://innuityfunding.com/page/1ny5m/Resources/Line_of_Credit.html>line of credit</a> you’ve always had now has new rules, things are different for everyone. Congress just passed a new law that affects all types of credit users. The act is called the Credit Card Accountability, Responsibility and Disclosure Act of 2009 or CARD.

The law does do some good things, like addressing some issues that the financial industry has had for a long time. For example, it will stop lenders from raising rates on current balances. Payments must first be applied to your balance with the highest interest rate and they can no longer raise your rate for unrelated bills that you may be late paying. Thankfully all those things will no longer be a problem for people.

The unfortunate reality is that banks still need to make and exist to make money. We may think they just exist to keep our money safe but they will find ways to make up the different since these new rules have changed the way the game is played. Maybe you’ve already noticed some changed with your accounts. Some consumers report having their accounts closed when they haven’t been used for a while and others report having monthly payments hike drastically along with interest rates. Further, some credit card companies are now just charging people to even have the card – a yearly fee to all account holders.

If you want to make sure that your credit cards aren’t closed then make sure you use it every once in awhile so that they see some account activity. You can pay it off right away and you don’t have to charge a lot but even a little can go a long way if you are trying to keep your card open. Make sure that you are keeping your credit under control. Continue to pay down those balances as some banks are reducing limits and are targeting those that have a high debt to credit ratio.

For those people that are financially savvy and pay off their credit card each month they should have nothing to worry about. The banks will probably treat them as they always have. However, do stay aware of the fact that you might now be charged to keep your credit card. Contact the company you are with to find out how things are changing.

You always have the option to look for lower interest rates if yours has risen or if you are unsatisfied with your card in any way. While most credit cards won’t have very good interest rates these days you may have good luck with a credit union over most banks. Check around and find the best option for your financial situation.

I’ve noticed recently that I’ve been getting a lot of updates regarding my credit cards and this is probably why. The game has changed and credit card companies are learning the new rules and how to play. Make sure you are checking up on your cards so you know exactly where they stand.