Although the economy is currently down, and lenders are not lending as freely as they may have five to ten years ago, the credit card industry is still looking for prospective customers. Not only is that a good sign, but with the recent regulation implemented by the federal government now is as good a time as any to apply for a credit card given the tight restrictions on the interest rates and fees credit card companies are able to charge. Here are a few things to keep in mind when shopping around for a new or another credit card to add to your portfolio.

Interest Rates
Whereas interest rates may run slightly higher than they did a few years ago, in many instances, they are fixed rates as opposed to variable. Credit card companies are highly restricted on when they can increase their customer’s rates and by how much. Not only that, there are what is called “Opt Out” options so should a creditor want to increase the rates they charge their customers, the borrower has the right to place a freeze on their current balance and lock their rate in at the original interest rate to which they agreed.

Fees
It is important to remember credit card companies are a “for profit” enterprise, so when Uncle Sam places restrictions on their current revenue streams, they will eventually find more. As with any business, when credit card companies are hit with fees, or have their current fees restricted, they will pass that on to the consumer. The good news here is that the government has also limited these companies in what they can pass on to their customers making the impact to you minimal at best.

Full Disclosure
In addition to limiting their fees their customers are on the hook for, as well as the rates they are able to charge, some of the additional regulation facing credit card companies today requires them to re-vamp all of their written communications to their customers to make sure the fine print is no longer fine. Not only will all financial impacts to you be clearly and printed for you to view, but you will also be made aware of when your debt will be cleared should you opt to only make the minimum payments. Especially with credit cards, this number will shock you.

Settlement Options
Another thing to consider is the option to settle your credit card debt. With this option, there may be some negative impacts to your overall credit, but with the regulations in lace from the federal government, these impacts are not nearly as long-standing as they once were. There is also no charge for this, so whereas third parties may offer to do this on your behalf for a “nominal fee”, credit card companies are bound by the same laws as these third parties and will provide you the same options for free.

Ultimately, credit when well maintained is a great financial tool as people need it. It is when it is not kept up when problems may arise. Educating yourself on the pointers above as well as making sure you are at least making your minimum payments on time; make utilizing credit cards a great financial option for you.

Going online to compare credit cards is the best way to see which card is most suitable for you. Not all credit cards offer the same benefits, rewards and rates, so it would be in your best interest to do an online comparison at Kanetix today.