Learn about the new credit card laws and how to get the best credit card deals.Like what you hear? Help us out by writing a review at iTunes. Questions go to money@qdnow.com. Thank you!
Money Girl
140 MG Ten Tips to Find the Best Credit Card
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Contact us before canceling entire account to continue bill credits to credit, stop and balance and report finance agreements due. Hello and welcome to Money Girl's Quick and Dirty Tips for a richer life. I'm your host, Laura Adams. If you're like most Americans, you have a credit card or two in your wallet and wouldn't leave home without it. Back in show 126 called Take Charge of Your Credit Cards. I mentioned upcoming legislation for consumer protection called the Credit Card Accountability Responsibility and Disclosure or Card Act of 2009. The first phase of the new law was implemented on August 20th and the remaining two phases will go into effect in early and mid-2010. In this show, I'll cover the three major provisions of the first phase and give you 10 tips to help you win the battle of consumer versus credit cards. The first change that all credit card users will notice is that you'll get more advanced warning about changes to your account. If a credit card company wants to make any substantial changes to your terms such as increasing your interest rate or fees, they have to notify you in writing at least 45 days in advance. Prior to the new legislation, consumers only got a 15-day heads up about these types of impending changes if they received any notification at all. The second provision in the Card Act is that you can just say no to your card issuer's proposed changes to your account. The company must inform you in writing about your right to opt out of their changes. If you don't want to pay a higher interest rate or more fees, you can cancel your account before they make any changes. That means, of course, that you can't use the card anymore to make new purchases, but if you have an outstanding balance, cancellation allows you to lock in the original, lower interest rate, and other terms on your account while you repay it. The third change that went into effect in round one of the new credit card law is that you'll have more time to pay your bill. Card issuers must now give you at least 21 days to pay up after your statement has been mailed out or electronically delivered. That's an improvement from the previous 14-day billing requirement. While these changes to credit cards are a real win for consumers, the banking industry has said that they come with a downside. The problem is that banks are expecting reduced profits as a result of the legislation on top of the losses they've already experienced due to the recession. That leaves them scrambling to find new ways to create revenue and to protect themselves against risk. Many card issuers have already cut credit limits and increased interest rates, fees, and minimum payments in anticipation of the new laws before customers could legally opt out. By the way, the new rules don't prohibit slashing your credit limit or increasing your minimum payment, and you can't opt out of those changes like you can with interest rate, hikes, and fees. In general, credit may become less available for individuals and small businesses under the new regulations, or it may take a higher credit score to allow you to get the same amount of credit that you could have gotten before. Many domestic banks have already raised the minimum credit score that they require for credit card approval. The bottom line is that you need to stay alert for changes to the terms of your credit cards and consider ditching one and applying for another when there are better options. Here are 10 tips about where to find the best credit card deals and how to get the most out of your existing cards. Number one, pay all your bills on time so you keep your credit score in tip-top shape. As I mentioned, those with better credit will get better credit cards, which means you'll save money on interest and fees. Number two, find out what credit cards your bank offers. Sometimes also having a deposit account with an institution qualifies you for a better deal or special card rewards. Number three, consider opening a brokerage account with an institution that offers a competitive card. For example, Charles Schwab has been recognized for their Visa Rewards card that gives brokerage customers 2% unlimited cash back with no annual fees. Since 2012, City has been a proud partner of Global Citizen Festival using the power of music to inspire people to help end extreme poverty. Tune in on YouTube September 28 to get inspired, experience performances from top artists and find out how you can join us in taking action. Together, we can make an impact for the love of making a difference, for the love of progress. City, visit globalcitizen.org/city to learn more. September is a great month for planning. We start thinking about the rest of the year, whether it's back to school, big year-end work projects, holiday plans, or travel. Planning ahead is crucial in life, especially when it comes to what happens when you're gone. Getting life insurance may sound daunting, but policy genius makes the process a breeze. With policy genius, you can find insurance policies that start at just $292 a year for a million dollars of coverage. Some options offer same-day approval and avoid unnecessary medical exams. Policy genius's technology lets you compare quotes from America's top insurers in just a few clicks to find your lowest price. It's the country's leading online insurance marketplace. And if you ever need help or guidance, they have an expert license support team to answer your questions, handle all the paperwork, and advocate for you throughout the process. It's never too late to plan ahead. Go to policygenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's policygenius.com. AT&T customers switching to T-Mobile has never been easier. We'll pay off your existing phone and give you a new one free, all on America's largest 5G network. Visit T-Mobile.com/carrierfreedom to switch today. Pay off up to $650 via virtual prepaid mastercard in 15 days. Free phone up to $830 via $24 monthly bill credits plus tax, qualifying port and trade and service on Go 5G next to credit required. Contact us before canceling entire account to continue bill credits to credit stop and balance and required finance agreements due. If you have a card that you like but haven't used in a while, consider making at least a couple small charges on it each year. That will prevent the issuer from canceling the card due to inactivity and ensure you keep a good credit card. 5. Set up your credit card for an automatic minimum payment. Some institutions, such as Chase, offer special rewards for enrollment in auto pay. That way, you'll be sure to never miss a payment deadline and get stuck with increasing late fees and penalties. If you can pay more than the minimum, you can always change the transaction amount before the due date. 6. Be sure to pay your balances off in full and on time each month, especially when you use higher interest rewards cards. You may find some banks are scaling back rewards, charging new annual fees and revoking awards when you pay late. When that happens, they may charge you a fee to reinstate your rewards. 7. Consider card offers from smaller regional banks or credit unions that may offer better deals. The Pentagon Federal Credit Union always gives nice perks to members, and if you're not eligible to join for free, you can still get in by paying a small annual fee to the National Military Family Association. The Pentagon Credit Union has a rewards card that pays cashback each month of 5% for gas purchases, 2% at supermarkets and 1.25% on everything else with no annual fee. Check it out at penfed.org. 8. The American Express Blue Cash Card is one of my personal favorites to use where it's accepted. It offers 5% cashback each year for gas, groceries and drugstore purchases and 1.25% cashback on just about everything else after you spend a certain amount with no annual fee. 9. If you have excellent credit, take advantage of it by getting a low interest card. Right now, the Simmons First National Bank has a Visa with 7.25% variable interest rate. Visit simmonsfirst.com for more details. And number 10. Take a look at the following websites to research other credit card offers. cardratings.com, bankrate.com, creditcards.com and cardhub.com. You'll find links to all the resources I've mentioned at moneygirl.quickendirtytips.com. I'll keep you updated about the next phase of regulations that'll take effect in February of 2010. That's when we'll see restrictions on interest rate increases, new gift card policies, limitations placed on marketing credit cards to young adults, and much more. Keep up with me on Twitter under the user name Laura Adams with NoSpace. Find all my other contact information at moneygirl.quickendirtytips.com. I'm glad you're listening. Shaqing. That's all for now. Courtesy of moneygirl. Your guide to our richer life. It's one thing falling in love with a house. Picturing yourself moving in and calling it home and quite another navigating the world of price negotiating. Mortgage lenders and finding the budget that works best for you. An agent who's a realtor can make understanding that world easier. Realtors have the expertise, access to proprietary data, and tools to help you get from imagining living somewhere, to actually doing it. That's the kind of help we can provide. 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