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New Credit Card Law: Will it help you?

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If you’re like many of us you probably have that dreaded credit card balance you’re so desperately trying to pay off. With a newly passed law, things could get a little easier. Here are the highlights:

• The biggest new provision affects a lot of people: if you’re under 21 you can’t get a credit card without a co-signer (parent, guardian or spouse). The idea is to protect younger adults from predatory lending. Before this new law was passed, basically anyone 18 and over could go out and get a credit card. Some folks argue that this could hurt people who are just starting out and trying to establish credit. As we all know, it’s pretty hard to do anything (rent an apartment, buy a car, etc.) without having at least some credit. A bit of a catch 22, I suppose.

• Credit card companies now have to give cardholders 45 days notice before raising interest rates. I think this is awesome. Before they could raise them whenever they felt like it. Oh, is it kinda cloudy out today? Boom. We just doubled your interest rate! Well, now they have to give you a head’s up.

• If you’re paying different interest rates on a single card and you make a payment over the minimum balance, credit card companies now have to apply that amount to the highest-interest debt first. Guess what they were doing before?

Hopefully this info will help you understand what’s going on with the new law. Now you know (at least a little bit) and knowing is half the battle! No, wait, that’s G.I. JOE! But that’s okay… it works here too. For the for full article check out:

www.nytimes.com