New Credit Card Rules in Effect

The Credit Card Accountability, Responsibility, and Disclosure Act has already begun to change the way that credit card companies are allowed to do business, but many customers have yet to experience firsthand the changes that have been made. The following are some of the ways that credit card companies will have to adapt:

Cardholders will enjoy longer periods of time for billing and notification of interest rate changes, adjustments in the way finance charges are made, an adjustment in the impact of late payments, and limits in the way that credit cars are issued to teens and young adults. Credit card companies must also obtain your approval before allowing you to make transactions over your credit limit and give your more information about how long it will take for you to pay off your balance.

Analysts are worried, though, that these changes will end up harming those who have had no trouble with credit card companies in the past by raising interest rates, reducing the amount of rewards, and by adapting several other variables. Despite the new legislation, the same caveats still apply when dealing with credit cards.

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