Tuesday, March 10, 2009
Credit Card Rules become more Consumer-Friendly
Credit card regulatory bodies are coming up with several new rules and policies for the consumers which would be more user-friendly for them. Most credit card users face inconvenience when they fail to get regular credit cards due to failure or delay in debt payment. This immensely affects credit scores/ratings. This is the reason why some banks came up with special credit cards for those having poor credit ratings. These cards are more like "prepaid credit cards". Here you get opportunity to fill up your own account when you have money available with you and use it in time of necessity. Like these there are several self help options which have got introduced. Some important ones are highlighted below:
1) Restriction is put up for credit card companies that they suddenly cannot raise the interest rate on current balances unless a user fails his payment to them.
2) The bill payment duration has become minimum 21 days. This is compulsory for every credit card company to provide a user for making the bill payment.
3) The credit card companies can no longer charge "double cycle billing" interest to you even in worst situation like you make full balance payment to nil one month and fail completely to pay anything the next month.
Hope these changes would be beneficial to users like us. Being a finance adviser i think one change should have come in the type of marketing that the companies do while selling credit cards to the users. They should disclose all factors, rules and regulations clearly.