New Credit Card Rules 2009-2010 - Things Will Never Be The Same

The credit card landscape is about to change drastically in 2009. In the wake of the credit crisis new laws have been passed in the Senate aimed at protecting consumers from the dirty schemes of the credit industry.

An End To The Unwanted Scares

Credit card companies are a fickle bunch. They can issue due dates at random or inconvenient times. But with this new law the due dates have to be announced with an appropriate amount of time to give the credit holders time to get the funds together and a total of 21 days between the arrival of the notice in your mailbox and the due date. Phone and online payments will be allowed and the payment that falls on a holiday or weekend is postponed to the end of next businss day - 5 P.M.

Controlled Interest Rate Increases

In the new credit card rules of 2010, the interest rates will a thing of the past. Often creditors would bait new consumers with lower interest rates and then suddenly hike them in a couple of months. Now, credit card companies can change rates only after a year and only if they provide a 45 day advance notice. None of that 'retroactive rate increase' stuff that has annoyed people for a long time.

Pay Higher Interest First

The new law has a provision where the higher interest dues are to be paid first, instead of lower interest balances. This permits consumers under the new credit card rules of 2010 to unburden themselves from the most taxing interest rates.

Reduce Eyestrain Through Less Fine Print

To relieve the stress on our eyes and on our minds, the credit card companies will not be allowed to use words like 'grace period' without elaborating on them. Do you know what the APR on ALL your different credit cards is right now? I bet you don't. Its not your fault either. Unless you get on the phone or maintain spreadsheets the APR isn't mentioned in plain view anywhere. Now, its all about to change. The monthly statements will clearly mention the interest APR and other fees.

Will the creditors strike back?

With these new rules looming on the horizon, the credit card companies will be giving higher interest rates upfront and reduce the maximum balance amounts consumers can carry. Also, the qualifications for new credit cards will get a lot tighter. This is a good and bad thing. Time will tell whether we get a dose of more good or more bad ...