The Credit Card Holders Bill of Rights has now been passed by the Senate.  Here’s a rundown of how these changes will affect the terms of service for cardholders.

1.)  Existing balances - Card Issuers will not be able to change the rate on your existing balances unless you are 60 days delinquent in your account.

2.) Payments - If you make more than the minimum payment on your credit card, the payment applies first to the balance that holds the highest interest rate on your card.  (For example if you took a cash advance at a higher rate than the rest of your purchases were set at, your higher than minimum payment would apply to the higher interest rate charge on your outstanding balance not only towards the lower rate that credit card companies get away with currently)

3.)  Teaser Rates - Credit Card Issuers cannot raise rates for the first year after you opened your account.  All promotional rates must last for at least 6 months.

4.)  Bills - Credit Card companies must give you your credit card bill 21 days before the due date.

5.)  Over Limit Fees - Credit Card companies cannot charge you over the limit fees on your cards unless you have actually signed up to allow such type of transactions.

6.)  Minors - If you are under 21 years of age, a credit card company must also obtain the signature of a parent or responsible adult who agrees to take responsibility for the debt unless the credit card company is given proof that the under 21 recipient can actually repay the credit charges.

7.)  Change of Terms - If a Credit Card company changes the terms of their cardholder terms they must give you a 45 day advance notice.

8.) Payment Option Fees - Credit Card companies cannot charge you fees to make your payment by mail, phone, bank transfer, or online payment except if it is an expediated service.

9.) Gift Cards - Any gift cards that are purchased must be available for use for a minimum of 5 years from the time of purchase of said card.

Likely the Credit Card companies will respond by charging higher merchant fees and take away levels of rewards in the case of reward cards that offer frequent flyer mileage and other rewards.  Banks love to make money and it is sure to take the changes out on the consumer and merchants.

Now more than ever is a time to review which companies truly have the best credit programs available.  It will also encourage a new round of consumers looking for the right credit card to use.  One way to make money off of this new trend is by setting up a Credit Card Broker business.  Click on the banner below and learn more.

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