With so many incentives to buy a home, now is by no doubt, the time to buy. With lenders tightening their guidelines, you might want to be sure you have your finances in check.
With brand new federal regulations, this will help you understand how it will benefit you and tame your credit card debt. The bad news, is because of this government intervention you might have already seen a rise in your interest rates. This is from Red Book Magazine
1. They can’t raise interest rates on debt you’ve already racked up. They can if you are more than 60 days late on these payments. So pay your cards on time!
2. If your card charges you different interest rates (say, 14% for existing balances, and 2% for balance transfers), they must apply your payments to the debt carrying the highest rates first. So the faster you pay it off, the more money you save.
3. They can’t raise your rates if they find out you’ve been late on other credit cards or loans. This doesn’t mean you credit score will not be affected, which can eventually lead to higher interest rates. Your best bet is just to pay it on time.
4. You can no longer go over your credit limit and be charged the subsequent fees- unless you notify your credit card company in writing that you’d like to spend more than your limit. So don’t spend more than your limit.
5. They will tell you on your bill how long it will take to pay off your debt and how much it will cost you, including interest, if you pay only the minimum each month. This will be an eye opener, and a hard lesson for many. Pay more than the minimum or you could possible pay on this card longer than your house mortgage.
6. Those under 21years old won’t be able to get a credit card unless they show proof of income or get an adult to cosign. I think this is the smartest law of all! When I was in college, you would sign your life away for a free t-shirt or can coozie. All adults over the age of 21 take note…DON’T COSIGN