Credit Card Rules Have Changed!!

Protect Yourself: How Credit Card Changes Affect YOU

The new rules for credit card companies that mean more consumer protection went into effect on Feb. 22, 2010. Here’s what they mean for you:

Your credit card company has to tell you:

• When they’re increasing your rate or other fees, giving you 45 days notice. Also, they can’t raise the interest rate on an existing balance unless you’re more than 60 days late with a payment. And they can’t increase your rate for the first 12 months after you open an account (with some exceptions).

• How long it will take to pay off your balance. It will say on your bill how long it will take if you only make minimum payments, and how much you’d need to pay each month to pay off your balance in three years.

Monitor your cards closely and follow these tips to protect yourself:

 Pay on time. Companies are required to mail or deliver your bill at least 21 days (instead of 14) before your payment is due. Plan accordingly.

 Stay below your credit limit. You will, however, be given the choice to “opt-in” to over-the-limit transactions. If you opt-in and go over your limit, your credit card company can impose only one fee per billing cycle.

 Try to make more than the minimum payment. You’ll pay less interest in the long run.

 Shop for the best deal. Don’t forget to check out local banks or credit unions when you’re looking for a card with the best rate.

 Read your mail. They may give you 45 days notice on a rate change, but you won’t know if you don’t open the envelope if it looks like junk mail.