Avoid Credit Card Rate Increase
With the current economic crisis in the United States, banks and financial institutions are raising credit card interest rates in an effort to make more money on their products. Credit card issuers have been under pretty lax regulations until recently, when President Obama signed into law the Credit Card Bill of Rights.
President Obama has criticized policies that allowed for confusing practices such as unannounced shifts in payment deadlines, interest charges or rate increases even when payments aren't late, according to CBS5.com
So, what can you do to avoid credit card interest rate hikes?
There are several different things you can do to reduce the chance that your credit card issuer will increase your rates.
Here are some ways to avoid credit card interest rate hikes:
- Pay your credit card bills on time.
- Pay more than your minimum balance.
- Read the fine print on your credit card statements.
- Be prepared to call and negotiate with the credit card issuer.
- Be prepared to switch your balance to another credit card with a lower interest rate.
Paying Your Bills on Time Is Important
Paying your credit card bills on time is one of the best ways to avoid having your credit card interest rates increase. This includes all your bills since credit card issuers are reviewing credit reports on a regular basis.
When making your credit card payment, you should also try to pay more than the minimum required amount. This may be more difficult than it sounds for some families. Even if it is only a dollar or two more than the minimum, it will look better to your credit card issuers than always paying only the minimum balance.
Read the Fine Print on Your Credit Card Statements
This is extremely important because this may be where you find out that your credit card interest rate is going to increase. This is another place that credit card issuers list rate changes, such as over the limit fees, late payment fees, etc.
If you would like to know more about financial laws, you may want to seek the advice of a
financial attorney.
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