May 3, 2011
New Credit Card Rules
The average American cardholder has 3.5 credit cards with an average of more than $14,000 of debt per household. By the end of 2011, 183 million Americans will have credit cards. So, how do you know which one is best?
“Consider how much a particular card helps you save money, and what it can do for your credit score,” Yahoo! Finance's Laura Rowley tells PINK. “Pick a card that's widely accepted everywhere. They generally offer better terms, and they're more convenient.”
Rowley adds that finding a card with a low interest rate is best if you plan to carry a balance from month to month. If you’d rather pay it in full, look for a card with no annual fee.
Thanks to the CARD Act and the economy in recovery, competition is returning to the industry. “This is a great time to take advantage of an introductory 0 percent card and pay off your existing debt, or find a card that offers better perks,” Rowley says. The act requires card issuers to re-evaluate customers' accounts every six months if their interest rate spiked after Jan. 1, 2009.
Experts say you can ask the company to waive the first year’s fee to see if the perks are worth keeping the card. Plus, finding the card with the highest credit limit “can help boost your credit score,” says Rowley.
Bonus PINK Link: Looking to become debt-free? Here’s how.
By Brittani Banks
"The art is not in making money, but in keeping it." Proverb