New Credit Card Law - Some details

You’ve probably been hearing a lot of hub bub lately about the new credit card regulations that will be going into effect on Feb. 22nd. Here are some highlights of the changes and the revisions.

: Image via Wikipedia

Changes for people under 21.

-They will have a hard time building their credit history. If they don’t have any income them an ‘adult’ will have to get involved.
- Credit card companies will have a tougher time marketing on college campuses.

Changes in payments -

-If you have several different interest rates on your cards, your payment is more than the minimum payment, then that portion over the minimum will be applied to the highest interest rate balance.

Here’s a simple example -

You have a balance on your credit card of $100.

$50 has an interest rate of 10%
$50 has an interest rate of 20%

Your minimum payment is $10 and you pay $20.

The first $10 goes to the 10% balance - the second $10 to the 20% balance.

- Generally you should have longer to make your payments after the bill comes.

- if you make a late payment, the penalty is not as stiff as it once was.

Getting a credit card will be tougher as new rules go into effect, including proof of income.

There are a ton of ways the credit card companies have gotten around some of these things that were supposed to help consumers.

= interest rates have gone up for almost all cards
= minimum payments have gone up
= credit limits have gone done
= a myriad of various fees

Enjoy your Tuesday.