All Credit Cards Are Not Created Equal

By Lisa Lehman, Marketing Coordinator, SPIRE Federal Credit Union

You may have heard about the recent federal legislation that changes how credit cards programs are regulated. The CARD Act is intended to protect consumers from unfair and deceptive credit card practices. However, as a result of these new regulations, some credit card issuers are getting creative in order to find "new" ways to earn revenue. As a consumer, we want you to be informed.

Beware Of:

• Rate Hikes. Some of the nation's biggest banks are raising rates on cardholders with no credit problems. Rates have been soaring into the twenties and beyond.
• Penalty Fees. Imagine being charged a fee for paying your balance in full each month or for not carrying a specific revolving balance. It is happening.
• Annual Fees. In the past, this type of fee was commonly associated with "rewards" type of cards, but now is being attached to all types of cards.
• Credit Limit Reductions. This can negatively affect your credit score. There are issuers out there that again, are doing this to cardholders without reason.

Be Informed

• Make sure you know what to expect from your credit card company.
• Be aware of what the interest rate is now and what it could go up to. Under the CARD Act, there is NO cap to the interest rate; it's up to you to ask questions.
• Ask about any fees that you could incur.

SPIRE offers a variety of variable rate Visa cards, including the Wedge Visa, with no hidden, annual or "surprise" fees. If you would like more information please contact SPIRE at 651.215.3500 or info@spire-banking.com.