Also in this playlist...
This transcript is automatically generated
I did you were getting things -- -- now from credit card company about the rules that are changing them talk about them for awhile now on today's big day.
Jerry -- others here credit advisor at credit dot com to hash it all out okay.
Most important thing people need to know as of today.
Well affecting your debit card not your credit content if you -- a debit card associated with your checking account and you don't happen overdraft line of credit set up.
They're giving you a choice.
If you spend more money than is in your account to have the choice you can either opt in and makes that purchase goes through if you aren't embarrassed that the cash register in which case you'll pay -- theater overdraft -- usually about 35 to forty bucks.
If you if you don't opt in and by default you opt out.
That they will decline may have purchased at the cash register that interestingly we surveyed consumers recently -- -- found about half a little women have said.
I want to update I don't wanna be embarrassed at the cash register.
That overdraft fees -- cat now.
The overdraft fee is not capital you know they're gonna attackers as well the Fed has recently capped late fees on credit cards but not on debit card so could be any amount it could also be multiple debit card -- now there is.
An alternative most banks like to set up an overdraft line of credit.
Or they might let you have money transfer from your savings to your checking you'll still the FB for that but it's not going to be -- 3540 -- That you could pay if you let this standard overdraft go through.
I start using overdraft fees I start -- and it left tonight does that affect my credit the -- -- the -- It does not affect your credit and debit cards are not report to the credit bureaus so there's no impact on your credit history but on your bank account yeah we'll -- -- and it can also end up in credit bureau called Texas which is a credit bureau that -- if you're checking account activity.
And if you get in Texas some sort of negative record it's hard to open a checking account that many -- influenced.
It was great.
Question -- like yeah you're welcome back bill and it -- accords with that now.
Statements have to be more transparent and this is really subjective isn't it -- -- How do you know what one person's hands as understandable and another person is totally confused.
Well it is citizen in this the -- credit cards in this case.
The Fed has set out some guidelines -- really good news is now they have to tell you how much it's gonna cost and how long it will take to pay off your balance if you just make minimum payment.
I don't you look to your credit card statement but a lot of times -- thirty years and you know -- thousands of dollars in interest yet they also show you what the payment would be if you need to pay off that Ernie won a -- that count in three years or left.
And that's a really good tool for consumers to say -- help that numbers too high.
I -- reach out for help.
Actually got one recently it was three in seven years to -- difference in -- right it certainly gives you pause if you do read it yet but I agree with Chris I mean.
-- unique transparent is somebody knocks on my door and says this is what you need to know out of your statement that's transparently when he gets -- on the -- there's 4000 people in the on active meaning my kids.
You don't read anything.
So transparency is really tough to define.
Well the good thing with this debit card overdraft changes that if you do nothing that you won't be up to the end so basically you could have a purchase turned down.
At the cash register -- hopefully have a back up.
Payment method you can -- credit card -- A different have a -- in cash and and -- for your purchase that way choke off of it.
You know now the only commercials were seeing more of than gold commercials by the free credits.
And evidence -- they -- it hasn't all what the little guy.
Whether it's the pirates singing about it -- not agreed in everybody's free free free but they're not really free.
Well usually those services are going to charge you something for your credit scores now if the financial regulatory reform bill passes -- it stands right now.
And consumers will start getting some of free credit scores not now all the time but if you were denied credit for something basing your credit score you -- a -- increase costs for credit based on your credit score.
You will get a free copy of your credit score along with that notice right now you get the notice that you get a free copy of your credit report written but.
I'll have people say you know I see the data but I don't know what it means out of the -- -- -- and fortunately most lenders use the cycle of course if you do it turned out and it's become slot and you'll probably see a cycle school -- -- -- -- -- -- -- -- -- -- -- I think you check your credit report every year for sharing your your credit score opted and we do have a free to a credit that -- truly free content you're part of -- -- well.
Because if there -- stuff on -- that you don't want on it takes a long time to get it up to people who -- processes many.
-- and I thank you so much credit -- credit dot com.
Filter by section