In just one week the CARD credit card reform act will take effect and while many may be expecting a friendlier credit card experience, consumers need to remember that the credit card companies they are dealing with are still the big corporations and they are still in the business to make a profit.
Therefore, there are a few things a smart consumer needs to be conscious of. First off, make sure that you read every piece of mail that comes from your credit card company, even if you don?t have the time, even if it looks like an advertisement, even if it looks like junk mail. The credit card companies are required to notify you of any pending changes. It is up to you to make sure that you read the notices.
Be wary about canceling a credit card. You may be better off to just stop using the card and pay it off. If you cancel the credit card company can raise your minimum payment, they could also put you on a five-year repayment plan. Also, if you do not have another credit card in place before canceling the old one, it may be much more difficult to get a new one because of the current tight credit conditions.
Be aware of any type of ?inactivity fees? if you stop using your card. If the company charges these fees you are still on the hook to pay them, even if you haven?t used your card.
Balance transfer fees can get as high as 4 to 5 % of the balance transferred now as opposed to just 2% in the past. Some credit card companies charge a flat fee so before you do any type of balance transfer make sure that you are aware of how much the fee will be.
The CARD act will bring some good changes but right now credit card company profits are declining, so pay attention to any type of change of your credit card to avoid paying too much.