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Why July 2010 Is A Good Month For Credit Consumers

By Ruth Racey
Published: Friday, January 22nd, 2010

One of the best moths for credit consumers is July 2010. This is because of the fact that on this date, credit card reforms are going to be enacted by the Federal Reserve. Remember that there are many cases wherein credit agencies are actually taking advantage of the credit accounts of consumers. One of which is giving credit reports laden with errors, which in turn hurts your credit score.

According to one study, 79% of the time, your credit report may actually have errors and inaccuracies in it. In addition, these errors and inaccuracies are known to hurt your credit score. Also, credit agencies are seen as not very transparent in giving credit score to consumers. In this case, here then are the different reforms that can help consumers have a better credit life:

  • Credit agencies cannot just raise your interest rate unless you are already 30% late
    Before, credit agencies have the power to raise your interest rate payments even though you are only 1 day late on paying your bills. Aside from the fact that it makes your debt larger, it is also one major cause of having a low credit score. In this case, due to these reforms, credit agencies cannot just raise your interest rate, unless you are already 30 days late in paying your bills.
  • They must be able to notify you before they will raise your interest rate
    Also, whenever credit agencies are going to raise your interest rate, you will just know it when you receive your credit report, as if it is a good surprise for you. The sad fact is that this surprise only causes you to have a low credit score. It is a good thing that when the reforms will be implemented, you must be notified by your credit agency before they can raise your interest rate.
  • They must be able to commit time to mail you your statements and bills
    In addition, credit companies will also be required to mail you important financial statements in order for you to be bale to manage better your debt.
  • The excess that is paid beyond the minimum required balance must be carried over to the debt with has the highest interest rate
    Before reforms, whenever you are paying in excess if the minimum payment requirement, this amount will be carries over to your debt which has the lowest interest rate. However, by July 2010, this excess amount can now be carries over to your debt with the highest interest rate.

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