Will the CARD Act Increase My Low Interest Rate Credit Card Rates? «

You have low interest rate credit cards or you are in a search to find them. Could the new Credit Card Accountability, Responsibility and Disclosure Act lead to higher interest rates? This new legislation that has become law in 2009 and was put into acting force in 2010 has become one of the most talked about concerns across the nation. How will it affect you, the consumer?

There are some changes to the way that lenders are affected by this new law. In fact, it goes without saying that many lenders will now face lower profit margins if they do not make some changes to the way that they do business since many of the fees and credit limit increases charged to consumers is now a bit different.

However, many lenders did raise interest rates in 2009 before the law went into effect and that caused numerous borrowers to see costly increases in their monthly payments and their overall credit usage costs. In some cases, borrowers with less than ideal credit scores were let out of credit card offers or they may have faced a much lower credit limit. These factors are important to keep in mind if you have a lower credit score.

Good Score Equals Better Rates

The CARD Act does a number of good things such as cuts the number of ways that fees can be charged in some circumstances that could be considered traps. It also ensures some protections over the way that interest rates are raised. Nevertheless, if you have a good credit score and you continue to work towards building that score up over time, chances are good that you will keep the benefits that you have.

Here are a few things to keep in mind about your low interest rate credit cards:

• You do need good or better credit to qualify for lower rates. Do ensure that your score remains high to ensure that you keep those lower rates.

• When looking for new lenders, do compare several options. This is perhaps the only way that you can ensure you get the best offer available even with the new restrictions. You also want to make sure that any offer you are applying for is up to date and not an older offer that may no longer be applicable.

• If you are concerned about what the new law means to your existing credit lines, contact your lender directly and ask them. You can learn what the lender’s plans are and have a better ability to plan for your future needs.

Keep in mind that if you are unhappy with the changes that the CARD Act has led to on your credit cards, it may be the ideal time right now to look for new offers. Several lenders will readily offer low interest rate credit cards to well qualified consumers. Take the time to seek them out and to get better rates and offers that are available to those who have good credit scores.