Clark Howard View on Credit Cards

Providing up to date information about the credit card industry, Clark Howard is a guru in finance. He counsels on alleviating credit card debt and protecting your credit score. Plus, working to educate the public about financial responsibility, he discusses the new credit laws, as well as some credit and credit repair scams that are beneficial to be aware of and understand. There are some dangerous mistakes that consumers often make in regards to their credit. However, Clark Howard aims to bring these problems to light and offer solutions.

Clark Howard admonishes the public about paying only the minimum balance on their credit card statements. Many of his articles about debt are eye opening, as he puts perspective on the expense of using credit cards unwisely. Additionally, Howard warns consumers about the credit limit cuts that are being made by lenders during our current recession. In October of 2009, he recommended that consumers begin to apply for new credit cards before their credit limits are reduced without warning. Plus, Howard advises consumers to be mindful of their credit when making financial decisions. Recently, he explained how instant in-store credit can demolish your credit rating and how closing credit card accounts too early can actually damage your score.

New credit card laws have been explained in understandable terms by Howard. He breaks down the basics by clearly stating the following facts.
Banks must give a 45 day notice before raising interest rates on future purchases.
Interest rates cannot raise on existing accounts unless the consumer is more than 60 days late.
Statements must indicate the number of years it will take to pay off the account, if you only pay the minimum.
Annual fees must be capped at 25% of your credit limit.
Payments on accounts with multiple balances will apply to the balance of the highest interest rate first.
Introductory offers on credit cards must be honored for at least 1 year.
2 cycle billing will no longer be allowed.

Additionally, Howard warns consumers about credit issuers that they should avoid. He believes ditching the big 5 credit card companies for smaller ones may be more advantageous right now. “With all the new credit card rules now squeezing their profit margins, you can expect they'll be experimenting with every new gouge fee possible,” he said in February of 2010. Plus, numerous times Howard has warned about some unethical practices of debt repair programs, admonishing consumers to be cautious. Overall, his advise seems practical, educational, and helpful.