Introductory or teaser rates must last for a minimum of 6 months according to the act. The 12 month rule applies only to the standard rates on the card.
In response to another post, where concerns about closing an account hurting a credit score: Since the account remains on the report for an extended period of time, the age factor on the credit scoring models is not affected, HOWEVER, the debt utilization ratio can increase which can result in a dramatic drop in score. For people that are carrying balances, the total of the balances divided by the total of the credit limits on all of the cards gives you your debt utilization ratio. A high ratio can result in a lower score. By closing an account, you have not lowered the total of your balances, however you have lowered the credit available to you. This means the ratio will increase. As I tell all of my clients, the best way to keep a score high is to keep your credit card balances at zero.
Just from the start and it gets on my nerve... Upfront MIP to 2.25%... !!! I remember 2008 Upfront MIP changed 3 times. and it gets worst and worst by the year. Bank's love this..., The more you pay in fees to the government - The less money you would have to pay towards the principal - The more interest you'll end paying them. If you wish to refinance.... get ready for more of the same.
Since universal default is no allowed any more does that mean ones creditors will not be able to look at one's credit, or simple not suposed to? Some (Amex) check every six months. A credit freeze should now mean no soft or hard inq.
As a creditor they can still pull your credit - to check if you continue to meet their "standards". They just can't look at late payments to jack your rate. I suppose it's possible that they can give you a credit line decrease though.
Does anyone know when we will receive communication from our current credit card companies about the changes?
Such as the set due date every month?
How do you opt out?
Over the limit fee's? How does the consent thing work?
thanks for posting this!...i have just finshed reading the rules and it seems very helpful! thanks!