What is a requirement regarding credit card promotional rates under the Credit Card Act?

The Credit Card Act, specifically designed to protect consumers from unfair practices in the credit card industry, stipulates that promotional rates must last for a minimum duration. The requirement for a promotional interest rate to be in effect for at least six months provides consumers with a reasonable timeframe to benefit from these lower rates without facing sudden increases that could lead to financial strain. This protects cardholders from unexpected changes and allows them to plan their finances accordingly.

The longer duration not only enhances transparency but also assures consumers that they won’t experience immediate rate changes after a short promotional period. This aspect promotes responsible borrowing and gives consumers the chance to manage their repayment effectively, contributing to overall financial wellness.