They’ve arrived! The bulk of the new rules set by the  Credit Card Accountability, Responsibility, and Disclosure (CARD) Act take effect today. The goal of the CARD Act – which is being rolled out in three phases – is to give consumers more protection and force credit card companies to provide more disclosure and transparency.  Right now we’re in phase 2 of the CARD Act. The first bunch of rules were enacted last August, with more to follow this coming August. Right now, here’s where things stand: 

1. Interest rate increases will only apply to new charges, not old ones. If your card company increases the APR on your account, know that it will only affect new charges that you make. Your previous balance of charges will still be subject to your old rate.

2. Interest rates cannot go up within the first year of a new credit card account. If you open up a credit card today and it boasts a 12% APR, this cannot change for the next 12 months, unless it is an “adjustable-rate” card or specifically stated to be an “introductory” (aka “teaser”) rate, which may expire sooner. Also, if you’re more than 60 days late paying a bill, you may be subject to a rate hike.

3. Payments are due the same day every month. This is great for those of us (like me) who can never remember due dates.

4. Credit card companies cannot change terms, fees or interest rates without a 45-day notice. 

5. Young adults under the age of 21 cannot open a new credit card account with a cosigner (most likely mom or dad).

6. We know must get details on how long it will take us to pay off our balance if we just pay the minimum. (my favorite)

For more details you can refer to the federal web site federalreserve.gov/creditcard