When the new credit card laws take effect on February 22nd, banks will no longer be able to raise interest rates on your existing balances for no reason.  In fact, they won’t even be able to raise interest rates on your balances if you are 59 days late.  However, even if you never miss a payment, credit card companies can still raise your interest rates on future purchases with 45 days notice.

For many, the final elements of the new credit card laws are taking effect much too late.  Many have had rates increased to 29.99% without having done anything wrong.  Still more have had less substantial, but no less painful rate doubles or triples during the past year.  Fortunately, those rate increases will now be illegal.  Unfortunately, credit card companies may take advantage of their ability to raise rates on new purchases whenever they want.

In all likelihood, this will impact people whose credit score, employment status, or spending habits change in a way that concerns credit card companies.  For example, a late payment to one credit card may provoke another company to raise rates on future purchases.  Of course, you will get a letter in the mail.  But as I learned firsthand, many people ignore these mailings, thinking they are junk mail.

So, even though the new credit card laws will surely help millions of credit card users, everyone should remain diligent when it comes to credit card mail.  Open and carefully review any notice sent from your credit card company to make sure your rate will not increase or an annual fee will not be imposed.  And please, do focus on repaying credit card debt.  Whether it be through the smart use of 0% balance transfers or lump payments, getting out of credit card debt is the only way to avoid interest rate increases in the future.

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