Credit cards have undergone so many changes over the past year, so if you’re confused, rest assured that you’re not alone. Last year brought a frustrating array of rising interest rates, slashed credit limits and otherwise tightened credit card terms. Now, with the Credit CARD Act due to take effect this month, a whole new set of changes (mostly good) will befall cardholders.
In this new environment, which are the best credit card practices for the year ahead? And which are the main things you need to know about the new credit card rules? To help cardholders navigate the new credit card era, Bankrate.com, a leading personal finance website, has issued a new Credit Card Guide for 2010. The guide, now available for free online, provides an easy-to-understand overview of the new credit card rules and how they apply to your financial situation. It helps cardholders navigate the new world of credit, including tips on how to handle important loopholes and protections in the law. Familiarizing yourself with these basics can save you the hassle-and fees-of potential misunderstandings with your credit card company. For those with little time and patience for reading, the Guide also includes a video introducing the main features of the new credit card law.
“The credit card world has been turned upside down since the passage of the Credit CARD Act of 2009,” says Ellen Cannon, managing editor at Bankrate.com. “This guide will help consumers understand what has changed, and what hasn’t.”
The Guide offers useful advice on how to evaluate rewards programs and balance transfer offers in the new world of credit cards; a review of what to look for in a credit card, and tips on how to maximize the benefits of card rewards programs. For those with no credit or poor credit, the Guide contains numerous resources including how to establish credit if you don’t already have it, questions to ask if you’re looking to get a secured credit card for people with bad credit, and tips for getting out of credit card debt, including an in-depth article on the mechanics behind debt settlement.
Of greatest interest for most credit cardholders are a series of interactive tools to help consumers navigate today’s credit climate. Some of the most useful tools include:
Balance transfer calculator. For people looking to make a balance transfer, it can be very confusing to determine whether the overall savings will be worth it. Bankrate’s balance transfer calculator enables consumers to compare different balance transfer scenarios; it calculates when the debt will be paid off and how much the transfer will cost, based on the monthly payment. The calculator takes into account all of the variables (including intro APR, final APR, and balance transfer fees) to help determine if a balance transfer is actually worthwhile for your financial situation.
FICO Score Estimator. Getting your credit score from each of the three credit rating agencies, Experian, Equifax, and Transunion, isn’t exactly cheap. Each credit bureaus charge around $8 or 9, so downloading the score from all three quickly adds up. Bankrate’s FICO Score Estimator enables you to estimate your FICO score for free, and it’s surprisingly accurate.
Rewards Credit Card Worksheet. This interactive worksheet enables users to compare the features of different rewards credit cards, to help determine which card is most suitable for their needs. Simply enter the different features of up to three rewards credit cards, including the number of points earned, annual fees, as well as other details of the rewards program, and the spreadsheet will compare the rewards cards to make it easier to see which offers the best value for you.
