Still Actively Watch Your Credit Limits
| March 1, 2010 |
Even with the second phase of the new law going into effect late last month, there are plenty of things that cardholders must still actively manage in order to make sure that they are not surprised when they get their credit card statement or try to make a purchase.
One important aspect that cardholders must now be more aware of is their credit limit, and any changes that have occurred pertaining to that limit. Unlike other factors such as interest rates, the new law does not require card issuers to give advance notice of any decease that will occur with limit changes. Instead the new law keeps cardholders from being charged over-limit fees, unless they have opted to allow over-limit transactions. For those that have opted in to allow these transactions the fees depending on the issuer will be much heftier then in the past.
When it comes to knowing where you stand with your credit limit, the best thing to do is to read every notice from your issuer, even if they may look like "junk mail". Within the notices make sure you verify any information before making any purchases (especially large ones). This will help make sure you keep up with your credit limit and hopefully keep your credit score high as going near your credit limit can drastically lower your score.
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