Buyer Beware: Credit card charges can cost you
In their never ending quest for profits, credit card companies have raised interest rates and added fees for everything they could think of. They can still do that, but new laws that took effect on February 2010 set some limits on how they go about it.
Interest rates on existing balances cannot be changed in most cases, which is an important change, and they must give you 45 days notice before raising the rate on future balances. “Over-limit” fees are limited, and statements must be mailed at least 21 days before the due date.
Click here for a complete summary of all the new credit card rules changes. However, even the new law does not prevent them from burying you in fees and interest. Not paying attention to these tricks of fine print by your friendly credit card company can cost you hundreds of dollars per year.
Remember, the credit card company needs to make money over and above the amount they charge a merchant for using the card when the card-holder purchases something. Use your credit card wisely. Read the fine print, and pay your bills on time.
For the FTC’s advice on Credit Card Charges and Choices, click here.