New Credit Card Rules and You
A hot topic among personal finance writers and bloggers is how the new credit card rules will affect existing credit card owners. I have already received a notice from our credit card issuer (yes – we have one). Mr. ToughMoneyLove scanned the document to make sure that it did not impose random fees just for the privilege of owning the card. Then I threw that mess of boilerplate away. I knew it was sent merely to inform us of the “new rules.” I have already read enough about the “new rules” to know that they were written in an attempt to protect careless consumers from their own carelessness. That leads me to write this brief post on my proposed rules for dealing with the new credit card rules.
The Mr. ToughMoneyLove Guide to the New Credit Card Rules
Rule 2: Be always mindful of consumer spending research proving that buyers who use plastic tend to buy more stuff and to pay more for the stuff they buy. Don’t be one of those millions of silly people. Instead, try to feel the pain of every discretionary purchase – at the time of purchase – so that maybe you won’t spend so much. Imagine the amount you charge being taken out of your wallet at that instant. Don’t be deluded into thinking that you are being “rewarded” for your spending.
Rule 3: Always transmit your credit card payment so that it arrives by the due date printed on the billing statement. It’s not that hard – really. Get some software that automates your payments and you are good to go.
Rule 4: Always pay your credit card balance in full. Ignore the urban myths about keeping a balance to help your credit score. Who makes up that crap and who can logically believe it?
Rule 5: Don’t be concerned with any of those other rules, even the “new rules.” Let the careless consumers worry about those.
Isn’t that easier than reading 5000 words of credit card boilerplate?