Credit Cards: Finding a Decent Credit Card Rate

Credit card rates have been heading higher since the Credit Card Holders Bill of Rights was passed last year and the Federal Reserve’s new credit card rules were approved on December 17, 2009. Average credit card rates are going up even though the new credit card laws were passed to protect credit card users.

The new rules and laws were enacted to prohibit certain credit card acts and practices that were deemed unfair. The new credit card laws were also enacted to improve how credit card information and credit card rates were disclosed to consumers.

Credit card rates have been going higher because starting February 22, 2010, your credit card company cannot increase the credit card rate for the first 12 months of opening your account.

Even if your credit card rate does increase after the first 12 months, it will only increase for new purchases. The rate cannot be increased on existing balances. There are exceptions to these rules like if you are more than 60 days late on a payment.

In addition to credit card companies charging higher credit card interest rates, they have also been raising credit card balance transfer fees. Most credit card companies used to charge around three percent for a balance transfer.

Now the average balance transfer fee is around four percent and some banks even charge as high as five percent for a credit card balance transfer. Most credit card issuers don’t have a maximum fee cap for balance transfers. Factor in the fee and the zero percent credit card rate isn’t really zero percent.

The new credit card laws and credit card rules will help consumers, but will also hurt some consumers, especially those who payoff their credit card balances every month and those who prefer rewards credit cards. Credit card issuers have started charging monthly credit card fees if you don’t use your credit card for a certain period of time.

Getting a fixed rate credit card is a lot harder these days. Most banks have been pushing variable rate credit cards since variable rate credit cards will make more money for banks. You  can start your search for the best credit card rates right here at MonitorBankRates.com: Best Credit Card Rates.