Keller Williams Realty of Northern Colorado

A good credit score makes all the difference when applying for a home loan. On May 22, 2009, the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 was signed into law, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees. While the new law offers significant safeguards for consumers, there are new practices designed to skirt the law that consumers need to protect themselves against.

Stay as informed as possible, read your statement, report any irregularities immediately, and watch out for these tricks:

SHORTENED BILLING CYCLE
The CARD Act requires companies to allow a window of at least 21 days from when a statement is mailed and when payment is due. Cardholders are reporting being shortchanged on billing cycle time and then being assessed late-payment fees.

ADVICE: Watch out for shortened payment dates.

SUNDAY DUE DATES
The CARD Act stipulates if a creditor does not receive or accept payments on weekends or holidays, then the date is extended and late-payment fees shouldn’t be triggered. However, some banks say they’re open for business even when there’s no mail delivery.

ADVICE: Don’t assume you are safe.

LOW-LIMIT CARDS
The CARD Act says a card’s total annual fees can’t exceed 25% of a borrower’s credit line. However, some issuers may be evading the fee restrictions by charging an up-front processing fee that doesn’t fall under the 25% cap.

ADVICE: Watch out for processing and other fees.

FALSE INACTIVE FEES
Issuers will no longer be able to charge inactivity fees or extra charges for people who don’t spend a certain amount each year, effective August 22. However, some issuers are charging an annual fee that’s waived if cardholders reach a certain spending threshold.

ADVICE: Watch out for conditional annual fees.

REBATE OFFERS
Some credit cards offer refunds on finance charges when customers pay on time. However, rebate offers aren’t governed by the CARD Act, and such offers can be revoked suddenly and for any reason, leaving cardholders stuck with higher charges.

ADVICE: Rebates may translate to real savings in finance charges.

Source: Keller Williams Realty, Inc., “This Month in Real Estate”, released 8/7/2010.

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Posted By: Keller Williams Realty of Northern Colorado – Fort Collins Real Estate Agents,
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