As the magic hour when the credit card bill becomes active approaches, credit card companies are scrambling to tighten up credit and raise interest rates to ensure that, with the bill in place, they can still keep their profit margins.
One of the most controversial amendments in the credit card bill will stop credit card companies from arbitrarily hiking up their interest rates and fees. As a result, most credit card companies are making their interest and fee changes now, while the credit card bill is still several months away.
As a credit card holder, you, along with the majority of credit card holders in America, have probably seen your interest rate go ski high while your available credit was cut off. Like you, many credit card holders are finding it harder and harder to keep up with their debts and to use their credit cards. If you want to survive the on going credit crunch, you should probably take heed of these hints.
If you are carrying a balance, do as much as you can to get rid of that balance. If you are one of those stuck with high interest rates, try calling up your credit company to arrange for better rates. If you find yourself stuck between a choice of cutting down your monthly payments and getting hit on your credit score, you should probably consider letting your credit score get hit. Unless you plan to take a loan anytime soon, your credit score will bounce back with time and some effort on your part. Having to live with high monthly payments could bring you to financial disaster.
If you are planning to move your balance to a low interest card, be very careful. Many card holders have been trapped because they moved their balance to another credit card, not knowing that the credit company would later on raise the minimum monthly payments. Credit card companies are also hiking up their transfer fees so you also need to consider that.
If you are lucky enough to have no balances in your cards, then try and keep it that way as much as possible. Be very careful of fees as well which are now at very high levels. You should always be aware of your credit limits. The cost of going over the limit can be quite high so always keep an eye on the credit limits of your card. In this regard, keep an eye on your mail as your credit company might be lowering your credit limits at any time.