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Your credit cards are about to be affected by the huge changes rolling throught the credit card industry. The Credit CARD Act of 2009, new legislation designed to protect consumers by curbing some of the worst abuses of the credit card industry, has already started going into effect. The first stage took place on August 20, 2009 with relatively minor changes, and the biggest changes are due to take effect on February 22, 2010. What’s going to change? This is just a small selection of the changes that are coming:

* Credit card companies will no longer be able to apply interest rate hikes retroactively. For example, if you miss a payment and your credit card issuer hikes your interest rate, the rate hike applies only to new purchases you make with the card. You can repay the rest of the balance at your old, lower rate. The only exception is if you are at least 60 days delinquent on your account, in which case the interest rate hike can apply to your entire balance.

* The credit card company must apply your payments to the parts of your balance with the highest interest rates first. Right now, credit card companies decide which part of your balance they will allow you to pay off first. That means that if you roll over $2,100 to a new credit card at a promotional lifetime rate of 1.99%, then charge $150 to the card at the normal rate of 12%, you will not be able to pay off the $150 until the entire $2,100 at the lower interest rate is paid off first. The $150 sits at the back of the account until then, accruing interest rapidly. The change to the credit card laws will prevent you from paying more in interest for that $150 purchase than you paid for it in the first place.

* It will no longer be easy to go over your credit limit accidentally. Currently, most credit cards will let you go over the limit, but charge a hefty fee for each purchase made over the limit. After February 2010, you will not be able to go over your credit limit unless you have given permission for the credit card company to let you do so, cutting back on the number of nasty surprises in your monthly statements.

* People under the age of 21 will no longer be able to get credit cards without a cosigner unless they can prove that they have sufficient income to repay their debts. Credit card issuers will also not be allowed to send offers for credit cards to people under 21 unless the person has signed up to get credit card offers. Companies that target college students by offering them “gimmes” to sign up for new credit cards will no longer be allowed to offer gimmes on campus.

Even more things are changing, far too many for a signle article to cover. But before the law’s changes go into effect, you’ll see the industry making its own changes: Credit card companies are hurrying to change the terms of your credit cards before the new law makes it difficult for them to make the changes. Expect to see interest rate hikes, drops in the returns you get from rewards programs, and other changes that will make credit more expensive. It’s the downside of the new credit card legislation. But once the wave of unofficial changes is past and the Credit CARD Act of 2009 goes into effect, you may find that your credit cards are safer and more secure than ever.

The least charming facet of credit cards for bad credit is the high interest rate that almost inevitably comes with them. However, the high interest rate is not necessarily permanent. Regardless of whether you have store cards, student cards, credit cards for bad credit, or any other kind of credit card that is saddled with an inconveniently high interest rate, there are ways to negotiate better credit card terms.

First, try phoning your credit card company and simply requesting that they lower your interest rate. According to a national survey, when credit card customers called their credit card company, said other companies had offered them lower interest rates, and told their current company that they were going to switch, 56 percent of the time their current company offered them lower rates as an incentive to stay. Customers lowered their annual interest rate by an average of five to six points, and some companies offered them perks like no interest for half a year. One customer with an exorbitant interest rate managed to reduce it by more than half, encouraging news if you have a credit card for bad credit. If the credit card company refused the customers’ requests, the customers suffered no penalties. As long as you are civil, requesting a lower interest rate is a risk free method of improving your interest rate with an excellent chance of succeeding.

You can use the same method to ask the credit card company to waive your annual fee. If you want to change your due date or move to a better rewards program, you do not even need to threaten to leave. Just ask.

You can improve your credit card terms remarkably even if you originally got your card under terms designed for credit cards for bad credit. You may even be able to get a deal equal to those enjoyed by premium credit cards. You are most likely to get drastic improvements if you have had your card for at least two or three years (four or more years is ideal), have paid on time for the last year or two, and are using a small percentage of your available credit. However, even if you have had your credit card for only a year, are using much of your credit line, or have made a late payment or two, you may still be able to talk the company into giving you some improvements. Be polite but persistent, and you can dramatically improve your credit card terms. It will not hurt you to ask.

If you’re having credit issues, you need a bad credit card like you need a hole in the head. However, credit cards for bad credit are terrible deals designed with the company’s, not your, needs in mind. Credit card companies levy high fees and high interest rates, siphoning your money away and possibly destroying your credit rating entirely. Instead, you should consider secured credit cards and prepaid credit cards.

You take out a secured credit card by giving the lender a sum of money that acts as your security. Your credit line is equal to the amount you deposited. You use the secured credit card just like a regular, unsecured credit card, charging to it and paying the bill as usual. If you default, however, your repayment comes out of the security. In effect, it’s a low risk credit line for the lender, because you are not able to spend more than you have given them, and they know they will be repaid in full if something happens. Because secured credit cards are considered a genuine line of credit, they are a good and safe method of rebuilding your credit rating.

Another type of credit cards for bad credit is prepaid credit cards. These cards work like ATM cards: You deposit money into an account, then withdraw it by charging to the card or by withdrawing from the card. Prepaid credit cards do not have interest rates because the charges do not come from the credit card company’s pocket or accrue, unpaid, until you send in a bill payment. Credit card issuers make a profit by charging you fees when you open the account and when you deposit more money into your account. Prepaid credit cards are good for most purchases, but you may find that businesses that want to put a hold on your account (like hotels) or that want to charge your account regularly (like magazine subscriptions or health club subscriptions) will not take prepaid credit cards. Prepaid credit cards are also not the best way to rebuild your credit rating, since they are not considered a real line of credit. However, if you need a card that functions like a credit card and you can’t get an ATM card, a prepaid credit card may be a good deal for you.

Finding good credit cards for bad credit is difficult. Because your options are more limited, you are under pressure to take any deal offered you, even a bad one. However, there are useful, nonpredatory credit cards for bad credit out there. With a little research and this advice, you’ll be able to find one.

2008 was a rocky financial year for most everyone in this country. The decline of the real estate market and the credit crisis left many wondering what to do next. With 2009 upon them, consumers are looking ahead and trying to chart a course for their financial security. Some are shaken, but will weather the economic storm okay. Others have racked up debt on their credit cards and are seeking ways to reduce or erase that debt. It is estimated that the average number of credit cards per consumer in this country is four. Credit cards have become a staple in everyday financial transactions. If utilized appropriately, they are a handy resource. On the other hand, credit cards offer an enticing path to spend beyond your means. It takes commitment to pay debt off, once it is accrued.

The first step to reducing and eliminating debt on your credit cards is to stop making purchases on the cards. It may be common sense, but erasing debt while you are accruing more is not easy. Also, resist the urge to apply for new credit cards. Alter your spending behavior. Write checks, use cash or a bank card that automatically takes the amount from your account. Your next step is to analyze your finances and figure out what you can live without in order to free up some funds. The most logical area of your budget in which to do this is discretionary items. Start taking your lunch to work, making your own coffee and get rid of unnecessary entertainment expenses. Use those funds instead to make payments on your credit cards to reduce the balances. You may need to temporarily take on additional income opportunities, if you find that you have no discretionary expenses to reduce.

After you have a handle on your budget, develop a routine of slowly paying down the debt on your credit cards. Make more than the minimum payments on the monthly statements. Continually paying only the minimum payments means that most of what you pay is going toward interest paid to the bank. If you pay more than the minimum, you will pay down more of the balance. If you have debt on many credit cards, focus on paying off the one with the lowest balance first. The emotional benefit of seeing some debt paid off will offer a reward and let you see the light at the end of the tunnel. Send in additional payments on your credit cards, if you ever have free funds. After you begin to eliminate the debt on your credit cards, cancel the most recent cards and keep the one you have had the longest. A card that has a long and solid history with you will help your credit score. Keep up this routine until all your credit cards are paid off. If you start using your cards again, remember how hard it was to pay off debt. Pay off your balances in full and view your card like you would a check or cash. Remember that you will have to pay for everything you put on your credit cards.

The uncertainty of the recession has caused most people to examine their financial plans and budgets, and set a course for cutting costs and saving more. Some consumers have used credit cards to spend beyond their means. Some of those people are, consequently, establishing plans to eliminate their debts and improve their credit histories. Credit card companies have been affected by the 2008 upheaval in the credit sector and the recession. They have taken steps to reduce their exposure to risk. Increasing the standards new customers must meet to qualify for a credit card has been one step. Higher credit scores are required to obtain the best rate cards. People with current accounts are also being examined. Many banks are lowering credit limits and changing rates for people with existing accounts. Banks are even closing accounts for customers whose cards have not been active recently. Decreased credit limits mean a higher debt to credit ratio for those who carry balances. Credit scores will be adversely affected by that. The changes banks have made to credit card restrictions, in addition to the current economic downturn, means that more people are seeking credit cards for bad credit. Those who have to open credit cards for bad credit are faced with a significantly higher rate and set of fees. Consumers frequently find it harder to pay off an outstanding balance and reduce debt, because they are paying so much more in interest in fees.

Many financial advisors recommend prepaid cards in lieu of high rate credit cards for bad credit. Unlike with a traditional credit card, a prepaid card will not allow a consumer to spend beyond his means. With this type of card, a consumer is also instilled with the idea that things purchased on a credit card are his responsibility. The downside is that a prepaid credit card will not help a consumer improve or build his credit history. Prepaid cards do not show up on a credit report. But for those seeking credit cards for bad credit so they can simply have the convenience of a credit card, a prepaid card may fit the bill. Another option is to simply utilize a debit card. Many banks issue consumers debit cards along with their ATM cards. Debit cards automatically take the amount of a purchase out of the bank account of a consumer. The card will not tempt someone to go on a spending spree that he cannot support. If those forced to consider credit cards for bad credit take on a high rate card, they should be certain to pay the balance in full every billing period. Paying in full will avoid fees and interest.

Have you ever spent time in the supermarket loading up your cart with the next month’s groceries, only to realize you did not have enough cash to pay your bill? Have you found yourself in a position of being turned down for a house or apartment due to having an insufficient credit history? Have you ever been in a situation when your car unexpectedly broke down on vacation but you didn’t have enough cash to pay for the repairs? If you have had the misfortune of encountering some of these sticky situations, it is time for you to get a credit card.

The desirable features of credit cards are almost endless. With credit cards, you will be able to carry a card instead of cash, you will almost always be able to pay for an item or service, you will be able to keep a close eye on your monthly expenses, and you will be able to build a good credit history.

With today’s unstable economy, most Americans are cautiously monitoring their spending. With so many jobs hanging in the balance, Americans do not want to stretch themselves too far. However, sometimes it can be easy to spend money without considering your finances. Thankfully for you, tracking purchases made with credit cards is almost effortless. You will receive a monthly breakdown, also known as a monthly statement. The monthly statements will help you to monitor each purchase you make as well as your total monthly spending.

When you use credit cards, you will receive additional benefits like developing a solid credit history. In a way, you can think of your credit score as your financial report card. If you neglect to make your payments on time your credit score will drop. If your credit score continues to depreciate, you could be denied many financially essential aspects of life, such as loans and apartment leases. When you spend beyond your means and do not take the responsibility to pay off your debts, you will be effecting the rest of your life. However, if you exercise responsibility and conscientiousness when using credit cards, you will be doing yourself a huge financial favor.

While using credit cards can positively effect your financial future, you will also have to avoid the danger of accumulating debt. With credit cards, making hasty purchases without first taking your financial situation into consideration is easy. With credit cards, you must consciously keep your spending under control. Do not bury yourself under excessive credit card debit by consistently spending beyond your means.

All in all, credit cards are an important part of your daily financial health.

The credit crisis of the past year and the economic downturn caused lending institutions to adopt more restrictive standards for borrowers, which means there are more people who looking for credit cards for bad credit. Retail giant Target just announced its fourth quarter earnings report. The retailer has already been affected by the fact that people are simply spending less, but its bottom line took a blow from having to soak up losses from consumer credit card delinquencies. Adopting stricter lending requirements is one of the goals for the company to help it stay afloat. That means that fewer consumers will qualify for a Target credit card. The retail giant has even said that they are shifting their attention back to giving customers what they need in their stores. The company will likely not approve an account for those seeking credit cards for bad credit. It is a trend that many other retailers, banks and lenders are following. Account delinquencies have caused institutions to decrease credit limits, increase rates and even cancel some accounts. Another company that followed suit and even raised the bar for standards is American Express. The company announced a deal for its most delinquent account holders to close their accounts. If those delinquent customers pay their balance and cancel their cards by April 30, American Express will give them several hundreds of dollars in cash. It seems that anyone looking for credit cards for bad credit will not be able to do business with AMEX.

Not everyone has made the best financial choices and, consequently, will have to shop for credit cards for bad credit. Credit card accounts are one of the ways consumers build their credit history and scores. You need a credit history to get credit. It is a tough dilemma for those struggling to establish credit or rebuild after some financial mistakes. Consumers who are shopping for credit cards for bad credit will find that offers available to them come with extremely high APR rates. Most are well above 30 percent and come with hefty fees. With such a high rate, a consumer who already has a less than perfect credit history can often fall into more debt and make his credit worse. A safe option for those who are shopping for credit cards for bad credit is a credit card that is paid before it is used. A prepaid card has none of the pitfalls of a traditional credit card. The balance has been paid, so spending beyond means will not happen. And it will not let a consumer easily fall into debt. The consumer must pay for the card first, so it does not require a credit check. For those who want to use a credit card instead of carrying cash or a checkbook but are not eligible for a low rate account, a prepaid card may be just the ticket. They also help those who have previously had credit card debt establish some responsible credit card spending habits. The downside to some prepaid credit cards is that they may charge a fee or do not report to credit agencies.