Credit Card Holders Bill of Rights and how it creates a balance of power for you

July 17, 7:49 PMMinneapolis Work-Life Balance ExaminerRebecca Adams

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Balance is hard when it comes to
credit...

Been getting some interesting mail from your creditors recently?

I have three business cards and two of them, Capital One and now Chase, just tripled my interest rate because they can.

In response,  these companies, along with scores of others, have been arbitrarily raising rates and changing the rules of the game. For customers like myself, who have always paid well over the minimum on time, these new rules may offer some protection once they are enacted.

The rules going into effect next month are:
Credit card issuers must provide at least 45 days notice prior to any increase in card fees or increase in the annual percentage rate (APR). It also requires issuers must mail account statements at least 21 days before the payment due and before assessing any late payment fees.

The most compelling change, to me, occurs along with many other changes in February 2010:

Creditors must apply payments to balances with the highest APR first.  This is something to think about NOW.  If you have those fun "balance transfer checks" to get something off one card to another, for a lower rate, what this means as of February 2010, any payments you make will be applying to the higher, regular charge rate.  

While I do not encourage anyone using those checks extensively, they can buy you time if you have them and want to use them as we get closer to February. Helpful if you have been stuck with a HUGE interest rate hike...grrrrrr.

Confused about what to do? 

The full disclosure of the Credit Card Holders Bill of Rights is available through TopLine Federal Credit Union (I am a customer and like them immensely).

Credit counseling is widely available in the Cities.  This site directs you to reputable firms with additional information on financial concerns.

Credit restoration is also an important piece of the puzzle if you have gone through a number of life hardships lately.  This is a tough service to know if someone is helping or just taking more of your precious money.

I recommend DLB and Associates - I know the owner, Darryl, and understand he has never had a dissatisfied customer in seven years of business.  I negotiated a 10% discount if you mention my article.  Pass it on...

I will write an article about the impact your credit has on your life in an upcoming article - I feel it an important element to maintaining a work-life balance.