Montana 1st CU Blog

Lawmakers have changed the way credit card companies operate recently.  I wanted to make you aware of the changes, not because Montana 1st is changing, but rather because you may have credit cards with other companies that are having to change their practices.

First, credit card issuers have to warn you 45 days in advance of a rate change.

Second, a card issuer can only increase your interest rate for non-payment after 60 days of delinquency.  In addition, once you have paid the issuer on-time for 6 consecutive months, your rate has to go back to the original interest rate.

Third, issues can no longer “double cycle bill”.  Meaning, card issuers cannot calculate interest over two billing cycles.

Fourth, card issuers cannot charge “over limit” fees unless you as the consumer have given them written consent to go over your limit at point-of-sale.

What does this do to/for you?  If you find yourself in credit stress…this is a great law.  However, if you pay your bill on time every month and don’t tend to have credit issues, you may find that your issuer starts charging an annual fee, increases your rates, or shortens your grace period.  So…like most changes, we will have to wait and see.

FYI, at Montana 1st there has never been an “over limit” fee, our grace period is still 30 days (unlike local competitors), we don’t use double billing cycles, and we still have a fixed rate!  OK…enough of the shameless plug.