How to Benefit from New Credit Card Rules

New credit card legislation passed the Senate and House in May 2009 and once President Barack Obama signs it into law it will be a big victory for cardholders who carry a balance and pay high rates of interest.

Here’s how you will be able to manage your credit card account to benefit from the new government credit card rules.

Difficulty: Easy

Instructions

1. The new rules reward good financial planning so make sure you pay the minimum amount due on time as the new government bill dictates that credit card companies should lower interest rates for card holders with a history of paying on time for six consecutive months.

2. You are going to find that paying on time and not getting slapped with a late fee will be easier in future. The new credit card rules demand that credit card companies send their bill no later than 21 days before the due date. So you won’t be worried about getting a bill a few days before a payment is due and rushing to get the check in the mail.

3. And you get a day extra to pay the bill! The credit card company now has to give you until 5 p. m. on the due date for the check to arrive before it can impose the dreaded late fee. If the bill says your check is due on a Sunday or holiday, it’s no longer a problem. The late fee won’t apply until the following business day.

4. Best of all, your company will not be able to increasing the interest rate on balances you’ve already run up whenever they feel like it. Now credit card companies will have to wait until you’re late making your minimum payment before they’re allowed to apply a penalty interest rate to existing debt.

5. Benefit from better information and advisements from your credit card company. The new U.S. government credit card rules require the banks to give 45 days’ notice before they can raise their interest rates so you’ll have some time to plan to avoid the change.

6. You will also be able to benefit from the banks having to apply any payment you make over the minimum balance against the highest-interest debt you owe them first. This will help you when you’re paying payment different rates on cash advances, balance transfers and purchases, and can’t make sense of it all.

7. You’re no longer going to get caught paying a fee for exceeding your credit limit. From now on, banks and credit card companies will have to ask you to advise you, and you will have to agree in advance to their terms, before you are allowed to go over your limit.

8. Application form “small print” is gone. From now on banks will have to present their rules in legible type so you don’t lost your sight as well as you bucks.

9. Hold onto gift cards. Looks like you’re going to have five years before they expire.

Tips & Warnings

• Look out for new offers, new fees, new rewards as the credit companies start to play around with their offerings in an effort to make the best of the new rules and keep customers.
• If you’re a student it’s going to be harder to get a credit card. The new credit card rules are set to impose a minimum age limit on credit card applicants. For students to get a card in future they’ll have to have a parent or guardian as primary card holder or be able to show they’re earning enough money to carry a card on their own.

[WritingNag]

on 10/25/2009 Thanks for writing such a helpful post on the new credit card rules. 5*

[WriterGig]

on 7/6/2009 Thanks for summing up the new credit card rules that have recently gone into effect as law. I am curious to see if any of the benefits you mentioned, such as lowered interest rates for customers who consistently pay on time, will trickle down to my accounts.