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Credit Card Reform
Many Australians have a love-hate relationship with their credit cards.
They provide unrivalled convenience, allowing you to quickly and easily move your money where you need it.
On the other hand, they can often feel like free money to others, and can end up costing a lot more than those people might think.
That's why in March 2011, the federal government announced its plan for credit card reform, which is expected to have a positive impact on transparency in the credit card market.
The new laws
The proposed credit card reform is part of the government'sCompetitive and Sustainable Banking System package and is set to include four main changes:
The tougher rules for credit card providers are likely to help you better understand your financial obligations for your credit cards.
The banks and other lenders appear to be opposed to the credit card reform, especially to the proposed rules about offering higher credit limits and paying down debts with the highest interest first.
Even if this credit card reform doesn's revolutionise the credit card market, they must- even only very slightly - reduce profits on plastic for the banks.
No matter the outcome it'sa good reminder to always read your Product Disclosure Statement for your credit card and be aware of what you're paying for.
The table below displayed some of today's best balance transfer credit cards. Can't find what you're looking for in the list below? Compare best credit cards here.
On the other hand, they can often feel like free money to others, and can end up costing a lot more than those people might think.
That's why in March 2011, the federal government announced its plan for credit card reform, which is expected to have a positive impact on transparency in the credit card market.
The new laws
The proposed credit card reform is part of the government'sCompetitive and Sustainable Banking System package and is set to include four main changes:
- Repayments apply to debts with the highest interest rate first
- No unsolicited offers for credit limit increases
- No fees for going over credit limits unless you accept the option
- Explaining what happens when you only repay the minimum
The tougher rules for credit card providers are likely to help you better understand your financial obligations for your credit cards.
The banks and other lenders appear to be opposed to the credit card reform, especially to the proposed rules about offering higher credit limits and paying down debts with the highest interest first.
Even if this credit card reform doesn's revolutionise the credit card market, they must- even only very slightly - reduce profits on plastic for the banks.
No matter the outcome it'sa good reminder to always read your Product Disclosure Statement for your credit card and be aware of what you're paying for.
The table below displayed some of today's best balance transfer credit cards. Can't find what you're looking for in the list below? Compare best credit cards here.
