Low Interest Credit Cards

If you’ve been watching the news lately, you’ve probably heard about the forthcoming changes in the credit card industry. These new regulations are actually the second of three phases be implemented (the last set of changes took effect in August 2009, and the next will be in August 2010).

On February 22, 2010, the largest “batch” of credit card changes will go into effect. Here’s a summary of the new regulations that will be imposed:

• Card issuers cannot increase rates during the first 12 months of a new account. The are, however, a few exceptions to this particular rule, and you can learn about them here.
• Card companies can no longer change the payment due date from one month to the next. It has to occur on the same day every month. This makes it easier to stay on top of your payments.
• Card companies must give you more notice of upcoming payments (an extra week, in fact).
• Double-cycle billing is now illegal.
• If you have more than one balance, your card issuer must apply extra payments (an amount above the minimum) to the balance with the highest interest rate first.
• Your statement must show the payment required to pay off your balance in three years. This is helpful for people who are trying to eliminate their balance, perhaps through a debt-reduction program.

There are just a few of the credit card changes that take effect in February 2010. If you want to learn more about them, check out our guide to new credit card laws. It’s written in plain English, to help you understand the changes that are taking place.

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