New Federal Credit Card Laws – What You Need To Know

Are you ready for the new credit card laws that go into effect tomorrow?  Well I can tell you that I am happy I am eliminating my credit card debt and using cash.

Starting tomorrow the Credit Card Accountability Responsibility and Disclosure Act of 2009 goes into effect.  These are the things you should know.

::Good Changes

  • Credit card companies are now required to tell cardholders how long it will take to pay off your balance if you were to only pay the minimum balance.  This should be a shocker for some people to see exactly  how long it will take.  Hopefully that will encourage you to pay more each month.
  • You can not exceed your credit limit until you agree to it first and are made aware of the fees
  • Interest rate increases will only affect new purchases and not existing balances unless you miss payments for more then 60 days.  I would definitely not recommend doing that.

::The Bad Things To Lookout For

With all these changes the credit card companies will need to make up the lost profits from these new laws.  Here is what you may see in the very near future.

  • Higher annual fees.
  • Higher balance transfer fees which personally I think are already too high
  • And the number one reason why you should not use a credit card and carry a balance. There will most likely be higher interest rates.  The only good thing about that is that it will be on new purchases only and you will be notified 45 days ahead of an increase.

All I can say is, DO NOT open another credit card.  If this doesn’t tell you not too I don’t know what will.

Source: Fox News

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