New Credit Card Rules Tackle Fees, Rates

Your credit card is about to become more consumer-friendly. The Credit Card Accountability Responsibility and Disclosure Act of 2009 authorized the Federal Reserve to implement new rules regulating the credit card industry. Many of these rules took effect on February 22, 2010, including 45 days notice for interest rate hikes, restrictions on getting a credit card under age 21, and the elimination of double cycle billing.

Now the final batch of regulations goes into affect on August 22, 2010. Generally, these new rules protect consumers from unreasonable penalty fees and interest rates. These rules will be particularly important if you are struggling with credit card debt. Here's a brief summary of what you can expect from the new regulations.

Interest Rates
Particularly for those who carry a balance on their cards from month to month, having low interest credit cards can save a lot of money. Unfortunately, many credit cards have gone in the opposite direction, raising rates substantially on many consumers. The new rules will help in several respects.

1. If a credit card company increases the annual percentage rate of your card, they must tell you why. While this part of the rule won't prevent a rate increase, at least you'll understand the reason (such as a falling credit score), and have an opportunity to address the issue.

2. If your credit card company does increase your interest rate, they must reevaluate that rate increase every six months. If the reason for the increase has been resolved, they must reduce your interest rate within 45 days of completing the reevaluation. This rule could be particularly helpful to those who have seen their credit card interest rates skyrocket for no discernable reason.

Penalty Fees
Credit card companies have become well known for fees. From late payment fees to over-the-limit fees, credit card fees have become a real nuisance. While the new regulations won't eliminate these fees, they will take a big bite out of them.

1. Generally, credit card companies will no longer be able to charge you a penalty fee of more than $25. There are some limited exceptions to this rule. For example, if the card company can prove that they incurred costs in excess of $25 as a result of a late payment, the penalty could exceed $25. And if you were late with a payment in the last six months and pay your bill late again, the penalty can go as high as $35.

2. You can also not be charged a late payment penalty that is greater than the amount of your minimum payment. This avoids the practice of card companies slapping you with a $39 late payment penalty because your were a few days late on a $15 minimum payment.

3. Credit card companies can no longer charge a fee if you don't use the card. Called an inactivity fee, some credit cards actually hit you with a fee if you didn't use the card enough. The new rules eliminate this practice.

4. Finally, credit card issuers cannot charge you more than one penalty fee for each transaction or event that gives rise to the fee. For example, if you were late with a payment and the penalty fee caused your account to exceed its credit limit, card companies would hit you with an over-the-limit fee in addition to the late penalty fee. The new regulations put an end to this double-penalty practice.

Time will tell just how well these regulations work at protecting consumers. In some cases, these regulations cause companies to find new ways to raise revenue, such as increasing annual fees or reducing other benefits. But at least for now, consumers will get some relief from credit card fees and rising rates.

 By DR Dr

How to Start a Home Based Business; Six Steps

Many people dream about having their own home business in order to escape the hassle of commuting, friction with overbearing bosses and the stress of the corporate workplace. In the good old days, the ideal home business was some kind of mail-order business. However, in today's world an Internet-based business offers the best way to gain flexibility and economic independence. If you are not sure how to go about it, take a look at the following steps which all home based entrepreneurs must take:

1. Determine what you want to do
You know you want a business that is yours and based in your own home but you may not be sure what exactly you want to do. No one can decide this for you. You must pick an area of activity where you have a bit of knowledge and most importantly, a passion. After all, you are probably leaving your day job because you were not happy with what you are doing. Don't pick another type of work that will be a misery, rather pick something that you enjoy doing.

For example, if you are an avid athlete, maybe you will want to sell sports supplies, or some kind of information product concerned with sports. When it comes to online selling you have a choice: to sell a physical item that can be shipped, or to sell an electronic item such as an ebook or a service, such as proofreading or editing. Brainstorm and pick your area of interest and then follow it up until your business idea becomes clear.

2. Set up your home workplace
If you want to work at home you will need a separate area where you can work efficiently. It doesn't have to be a large office, but it has to be a place where you can work without disturbance. Once you have carved out your working area, you have to equip it. The minimum is an up to date computer with a good connection to the Internet. You will probably need software such as an html editor, an ftp program, and an art or photo editing program such as Adobe Photoshop. A good accounting program will also be required once you get rolling and the money starts flowing in.

3. Make sure that you have a back up income
Setting up a successful home business is harder than it looks and harder than the advertisements would have you believe. In the first months you may not make any money. Budget some money to cover the initial period when sales are likely to be zero or very low, and plan your first year realistically so that you can survive during the starting period.

4. Pick a proper domain name and register it at a reputable registrar
Your domain name is your brand name and it will become your online identity. The name should describe what you do and it should be memorable. Another thing to consider when deciding on a domain is to try to include a search keyword that your likely customers would use when finding you.

Many of great domain names are already taken. The best way to find out is to go to one of the reputable registrars such as Godaddy, Yahoo or Directnic and put your idea into the search box. You will find out if the domain name is available and also find alternatives. Don't be tempted by low cost registrars that are not well known. If they fold, then you could have trouble maintaining your domain name. 

5. Find a reliable hosting service for your business
As with the domain registration, choose a hosting company that is well known and that has good customer support. Check to see if they have 24 hour phone service or an online chat service. Pick up a hosting package that has enough space for your needs. Generally most websites only use a small portion of the web space that is offered. If you are not sure which package to get, ask the sales departments of a few of the leading hosting firms to see what they offer.

6. Design and Promote Your Website
Your website is your store-front. It is your sales representative and it is your business suit all in one! You can make a good impression with a professionally designed site, and whatever you invest in a good design will be repaid later on. So don't skimp on your website, have it designed professionally or purchase a striking web template and customize it to fit your needs. But even the best website can't bring you sales unless it is promoted online. Advertise your site with paid ads, through high search engine place, by participating in online forums and by distributing articles with a link back to your site.

Follow these six steps and you will be on your way to fulfilling your dream of having a home-based business.

"It's through curiosity and looking at opportunities in new ways that we've always mapped our path at Dell. There's always an opportunity to make a difference." Michael Dell Quote

Article by David Bond