If
you’re doing your holiday shopping, you may want to think twice
about using a credit card to purchase that Xbox, iPod or the new
Droid phone. Even if you’re shopping for a pair of the latest
Christian Louboutin pumps, clothes for your pooch or gas for your
Lexus, you’re not exempt from the interest rate hike your credit
card company will likely levy in advance of the bill that goes into
effect early next year.
The Credit
Card Bill of Rights, officially called the Credit Card
Accountability, Responsibility, and Disclosure Act (CARD), goes
into effect in February 2010.
Here are some of the key elements to the Credit
Card Bill of Rights that you have to look forward to:
·
Freezes interest rate on canceled cards.
·
Allows consumer to prevent over-the-limit
charges that will result in extra fees.
·
Bans card issuers from marketing to
students.
·
Prohibits unilateral changes to card
agreements before that card’s expiration date.
·
Restricts dormancy and service fees for
unused cards.
This
past August, credit card issuers were informed that they must give
customers 45 days’ notice before raising interest rates, instead of
15 days. Check your statement before it’s too late to opt out
of the interest rate hike. Be advised that if you opt out, the issuer
will more than likely close your account. The advantage is that the
outstanding balance on your account will not be subjected to the
increased interest rate.
Have you
ordered your free credit report?
This
is a good opportunity for you to request your free annual credit
report. You must go to the centralized agency; if you go directly to
the credit reporting agencies, Equifax, Experian and TransUnion, you
will be charged unless you fit other criteria for a free report.
You’re only entitled to a free annual credit report from those
agencies when you’re denied a loan, insurance policy or job based on
your credit report; you’re applying for unemployment or receive
public assistance; and you currently reside in a state that already
offers an annual free credit report from each credit reporting
agency. This includes Colorado, Maine, Massachusetts, Maryland, New
Jersey and Vermont. Georgia residents are entitled to two free credit
reports annually.
Here are three ways to request your free credit
report:
1. Online:
Go to www.annualcreditreport.com,
which is the only authorized source for consumers to access their
annual credit report online for free. Enter the address carefully. It
a request for payment is made, you are on the wrong Web site.
2. Phone:
Call (877) 322-8228.
3. Mail:
You may complete the form on the back of the Annual
Credit Report Request brochure, and
mail it to: Annual Credit Report Request Service, P.O. Box 105281,
Atlanta, Ga., 30348-5281.
–yvette caslin
