New Credit Card Law

CREDIT CARD NEW WHAT YOUR CREDIT CARD COMPANY HAS TO TELL YOU WATCH OUT . FOR NEw TRAPS! D When they plan to increase your rate or other fees. D How long it will take to pay off your balance (when making minimum payments). NEW RULES REGARDING RATES, FEES. AND LIMITS TOUGHER TO GETA CARD: As Congress moved closer to passing the law last spring, banking industry advocates cautioned that shaking up the status quo would mean that credit would be more difficult to come by for consumers. HIGHER FEES: Consumers could O No interest rate increases for the first year. suddenly find themselves socked with a variety of new fees and charges. D Increased rates apply only to new charges. RISING RATES: Banks have moved consumers over D Restrictions on over-the-limit transactions. to so-called variable rate cards, whose rates fluctuate based on the direction of the prime rate. And, that rate at historic lows, experts said consumers should be prepared for at least a moderate increase in their APR.The new law also does not include any sort of interest rate cap banks and issuers can charge customers that are late on their payment by two D Caps on high-fee cards. Protections for underage consumers. CHANGES TO BILLNG AND PAYMENTS months or more. O Standard payment dates and times. O Payments directed to highest interest balances first. FEWER REWARDS: Consumers may also be increasingly unable to enjoy the fruits of their spending as a result of the new law. O No two-cycle (double-cycle) billing. Ridiculous Interest Payments RIP Average credit card holder If you made the minimum Year 20 You have now Year 30 Year 50 You have now You have now owes $10,679. At 24.99% interest payment for 10 years: You have now paid: $56,660 And you still owe $13,016 paid: $89,484 And you still owe $14,370 paid: $165,729 And you still owe $17,515 the minimum payment would be: $213.58 paid: $29,930 And you still owe $11,790 Sources: Federal Reserve, US News, CNN, Cracked CREDIT CARD LAW NEW WHAT YOUR CREDIT CARD COMPANY HAS TO TELL YOU WATCH OUT . FOR NEw TRAPS! D When they plan to increase your rate or other fees. D How long it will take to pay off your balance (when making minimum payments). NEW RULES REGARDING RATES, FEES. AND LIMITS TOUGHER TO GETA CARD: As Congress moved closer to passing the law last spring, banking industry advocates cautioned that shaking up the status quo would mean that credit would be more difficult to come by for consumers. HIGHER FEES: Consumers could O No interest rate increases for the first year. suddenly find themselves socked with a variety of new fees and charges. D Increased rates apply only to new charges. RISING RATES: Banks have moved consumers over D Restrictions on over-the-limit transactions. to so-called variable rate cards, whose rates fluctuate based on the direction of the prime rate. And, that rate at historic lows, experts said consumers should be prepared for at least a moderate increase in their APR.The new law also does not include any sort of interest rate cap banks and issuers can charge customers that are late on their payment by two D Caps on high-fee cards. Protections for underage consumers. CHANGES TO BILLNG AND PAYMENTS months or more. O Standard payment dates and times. O Payments directed to highest interest balances first. FEWER REWARDS: Consumers may also be increasingly unable to enjoy the fruits of their spending as a result of the new law. O No two-cycle (double-cycle) billing. Ridiculous Interest Payments RIP Average credit card holder If you made the minimum Year 20 You have now Year 30 Year 50 You have now You have now owes $10,679. At 24.99% interest payment for 10 years: You have now paid: $56,660 And you still owe $13,016 paid: $89,484 And you still owe $14,370 paid: $165,729 And you still owe $17,515 the minimum payment would be: $213.58 paid: $29,930 And you still owe $11,790 Sources: Federal Reserve, US News, CNN, Cracked CREDIT CARD LAW NEW WHAT YOUR CREDIT CARD COMPANY HAS TO TELL YOU WATCH OUT . FOR NEw TRAPS! D When they plan to increase your rate or other fees. D How long it will take to pay off your balance (when making minimum payments). NEW RULES REGARDING RATES, FEES. AND LIMITS TOUGHER TO GETA CARD: As Congress moved closer to passing the law last spring, banking industry advocates cautioned that shaking up the status quo would mean that credit would be more difficult to come by for consumers. HIGHER FEES: Consumers could O No interest rate increases for the first year. suddenly find themselves socked with a variety of new fees and charges. D Increased rates apply only to new charges. RISING RATES: Banks have moved consumers over D Restrictions on over-the-limit transactions. to so-called variable rate cards, whose rates fluctuate based on the direction of the prime rate. And, that rate at historic lows, experts said consumers should be prepared for at least a moderate increase in their APR.The new law also does not include any sort of interest rate cap banks and issuers can charge customers that are late on their payment by two D Caps on high-fee cards. Protections for underage consumers. CHANGES TO BILLNG AND PAYMENTS months or more. O Standard payment dates and times. O Payments directed to highest interest balances first. FEWER REWARDS: Consumers may also be increasingly unable to enjoy the fruits of their spending as a result of the new law. O No two-cycle (double-cycle) billing. Ridiculous Interest Payments RIP Average credit card holder If you made the minimum Year 20 You have now Year 30 Year 50 You have now You have now owes $10,679. At 24.99% interest payment for 10 years: You have now paid: $56,660 And you still owe $13,016 paid: $89,484 And you still owe $14,370 paid: $165,729 And you still owe $17,515 the minimum payment would be: $213.58 paid: $29,930 And you still owe $11,790 Sources: Federal Reserve, US News, CNN, Cracked CREDIT CARD LAW NEW WHAT YOUR CREDIT CARD COMPANY HAS TO TELL YOU WATCH OUT . FOR NEw TRAPS! D When they plan to increase your rate or other fees. D How long it will take to pay off your balance (when making minimum payments). NEW RULES REGARDING RATES, FEES. AND LIMITS TOUGHER TO GETA CARD: As Congress moved closer to passing the law last spring, banking industry advocates cautioned that shaking up the status quo would mean that credit would be more difficult to come by for consumers. HIGHER FEES: Consumers could O No interest rate increases for the first year. suddenly find themselves socked with a variety of new fees and charges. D Increased rates apply only to new charges. RISING RATES: Banks have moved consumers over D Restrictions on over-the-limit transactions. to so-called variable rate cards, whose rates fluctuate based on the direction of the prime rate. And, that rate at historic lows, experts said consumers should be prepared for at least a moderate increase in their APR.The new law also does not include any sort of interest rate cap banks and issuers can charge customers that are late on their payment by two D Caps on high-fee cards. Protections for underage consumers. CHANGES TO BILLNG AND PAYMENTS months or more. O Standard payment dates and times. O Payments directed to highest interest balances first. FEWER REWARDS: Consumers may also be increasingly unable to enjoy the fruits of their spending as a result of the new law. O No two-cycle (double-cycle) billing. Ridiculous Interest Payments RIP Average credit card holder If you made the minimum Year 20 You have now Year 30 Year 50 You have now You have now owes $10,679. At 24.99% interest payment for 10 years: You have now paid: $56,660 And you still owe $13,016 paid: $89,484 And you still owe $14,370 paid: $165,729 And you still owe $17,515 the minimum payment would be: $213.58 paid: $29,930 And you still owe $11,790 Sources: Federal Reserve, US News, CNN, Cracked CREDIT CARD LAW NEW WHAT YOUR CREDIT CARD COMPANY HAS TO TELL YOU WATCH OUT . FOR NEw TRAPS! D When they plan to increase your rate or other fees. D How long it will take to pay off your balance (when making minimum payments). NEW RULES REGARDING RATES, FEES. AND LIMITS TOUGHER TO GETA CARD: As Congress moved closer to passing the law last spring, banking industry advocates cautioned that shaking up the status quo would mean that credit would be more difficult to come by for consumers. HIGHER FEES: Consumers could O No interest rate increases for the first year. suddenly find themselves socked with a variety of new fees and charges. D Increased rates apply only to new charges. RISING RATES: Banks have moved consumers over D Restrictions on over-the-limit transactions. to so-called variable rate cards, whose rates fluctuate based on the direction of the prime rate. And, that rate at historic lows, experts said consumers should be prepared for at least a moderate increase in their APR.The new law also does not include any sort of interest rate cap banks and issuers can charge customers that are late on their payment by two D Caps on high-fee cards. Protections for underage consumers. CHANGES TO BILLNG AND PAYMENTS months or more. O Standard payment dates and times. O Payments directed to highest interest balances first. FEWER REWARDS: Consumers may also be increasingly unable to enjoy the fruits of their spending as a result of the new law. O No two-cycle (double-cycle) billing. Ridiculous Interest Payments RIP Average credit card holder If you made the minimum Year 20 You have now Year 30 Year 50 You have now You have now owes $10,679. At 24.99% interest payment for 10 years: You have now paid: $56,660 And you still owe $13,016 paid: $89,484 And you still owe $14,370 paid: $165,729 And you still owe $17,515 the minimum payment would be: $213.58 paid: $29,930 And you still owe $11,790 Sources: Federal Reserve, US News, CNN, Cracked CREDIT CARD LAW NEW WHAT YOUR CREDIT CARD COMPANY HAS TO TELL YOU WATCH OUT . FOR NEw TRAPS! D When they plan to increase your rate or other fees. D How long it will take to pay off your balance (when making minimum payments). NEW RULES REGARDING RATES, FEES. AND LIMITS TOUGHER TO GETA CARD: As Congress moved closer to passing the law last spring, banking industry advocates cautioned that shaking up the status quo would mean that credit would be more difficult to come by for consumers. HIGHER FEES: Consumers could O No interest rate increases for the first year. suddenly find themselves socked with a variety of new fees and charges. D Increased rates apply only to new charges. RISING RATES: Banks have moved consumers over D Restrictions on over-the-limit transactions. to so-called variable rate cards, whose rates fluctuate based on the direction of the prime rate. And, that rate at historic lows, experts said consumers should be prepared for at least a moderate increase in their APR.The new law also does not include any sort of interest rate cap banks and issuers can charge customers that are late on their payment by two D Caps on high-fee cards. Protections for underage consumers. CHANGES TO BILLNG AND PAYMENTS months or more. O Standard payment dates and times. O Payments directed to highest interest balances first. FEWER REWARDS: Consumers may also be increasingly unable to enjoy the fruits of their spending as a result of the new law. O No two-cycle (double-cycle) billing. Ridiculous Interest Payments RIP Average credit card holder If you made the minimum Year 20 You have now Year 30 Year 50 You have now You have now owes $10,679. At 24.99% interest payment for 10 years: You have now paid: $56,660 And you still owe $13,016 paid: $89,484 And you still owe $14,370 paid: $165,729 And you still owe $17,515 the minimum payment would be: $213.58 paid: $29,930 And you still owe $11,790 Sources: Federal Reserve, US News, CNN, Cracked