(01/20/2011) As a result of the Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act), many expected financial institutions to increase fees and eliminate rewards programs. While some banks did do this, a number did the complete opposite and actually eliminated fees. Informa Research Services suggests that consumers check online rate tables to shop for the best credit card.
The CARD Act requires issuers to notify cardholders when they plan to increase rates or fees and how long it will take for the cardholder to pay off their existing balance. In addition to these, there are also new rules addressing interest rate increases, fee caps, and changes to billing and payment procedures.
According to an article published in American Banker, some experts assert that the reason behind some financial institutions eliminating fees is that "it may simply be cheaper for issuers to drop these fees rather than bring them into compliance." Whatever the reason is, consumers should certainly look for the best deal on their credit card.
Using online rate tables can make credit card shopping a quick and painless process. These tables allow users to sort through a variety of credit cards sorting them by introductory interest rate, standard rate, and annual fee.