Many of us have one, or two or maybe even three.
We get them to build credit, or earn points for vacations, but the rates and terms for many credit cards are soon changing.
Credit cards can either be your best friend, or your worst nightmare.
But if you keep an eye out, some new changes could prove to be more friendly.
Card holders beware, 22 new changes for your accounts will go into effect on February 22nd, 2010.
"Credit card companies cannot charge you a late fee unless you're 60 days or more delinquent, you usually only have 14 days to pay that bill, that will be extended to 21 days, due dates must remain the same every month, they will not allow you to go over your credit card limit." Says California Business Attorney Steven C. Peck.
The new laws are meant to protect both consumers and lenders.
Especially the debt stricken college aged student who has an average of $3100 worth of debt.
Among the many changes, new restrictions could determine how companies solicit to students, and just who can sign up for a credit card.
"If you are under the age of 21, you will have "If you are under the age of 21, you will have to have a parent or legal guardian's co-signature in order to get a credit card. For parents or guardians out there though, that info will also on your credit report, so you have to be careful about that." Says Peck.
Perhaps the most notable change involves your interest rate. Your credit card company now has 45 days to notify you of a rate change and why it's changing.
"You will somewhere in the wording of the letter they send you, you will either have the option to either call or write a letter to opt out of that rate increase. Once you opt out of that, your rate will go back down but your access to that card will close." Says California Business Lawyer Steven C. Peck.
From clearer wording on bills to other stricter rules and regulations, some think the changes will make the decision between cash or credit a little easier.
"You shouldn't over draw you account, that's just going to cost you a lot of money, they have all kinds of penalties. So, probably have a place where they actually stop and say no- it would help people prevent getting themselves in too deep." Says Los Angeles Business Attorney Peck.
Contact Steven Peck's Premier Legal toll free at 1.866.999.9085 to talk to an experienced California Business Lawyer and visit us on-line at www.premierlegal.org.
