Credit card changes have been a long time in coming to prevent credit card holders from paying outrageous fees, having 
interest rates raised for seemingly no reason, and having their minimum payments doubled. The new legislation passed in May of 2009 but they will not go into effect until 2010. This intermission time period seems to be just long enough for credit card companies, who are scrambling for revenue and profits, to tighten the noose even more on consumers before they can no longer legally do so.
New Rules Not Far Off
There have been many complaints filed against credit card companies in recent weeks due to the increasing interest rates and adjustments to required monthly payments with no advanced warning or substantiated cause for changes to card holder accounts. Experts surmise that the increasing interest rates and other fees are associated with the increasing number of default rates on consumer accounts. What it boils down to is the credit card companies are racing ahead to implement changes in their underwriting practices before the new legislation takes effect.
The new laws will prevent credit card companies from raising interest rates on accounts unless the account is 60 days or more in arrears. If there is non-payment for 60 days or more, the annual percentage rate can only be applied to the purchases made after the 60 day period and not for the total balance owned. The drawback to this measure is that it opens the door for creditors to keep upping your interest rate on all new purchases after you default on payment for two months, provided they notify you in writing about the changes they plan on implementing to your account.
No More Universal Default
Another practice being phased out thanks to the new credit card laws is universal default – when a credit card issuer raises the rate of your interest based on your paying any of your other bills late. Congress ruled it unfair. However, consumers will also find if they have mediocre credit scores, it will be harder to get approved for credit. The theory amongst lenders is that if you defaulted once, you are likely to default again.
Age Is a Factor
Potential card holders under the age of 21 will also have more trouble qualifying for credit cards. Companies will not be allowed to issue credit cards to anyone under the age of 21 unless there is tangible proof that the individual can reasonably repay their debt. This lack of creditworthiness at a young age will hamper college-aged kids from building a longer, more solid credit history than they could in the past.
What To Do With Your Cards
Financial experts predict that less credit cards will be available as lending standards get stricter. Those consumers without credit scores of 720 or better will likely not be approved for credit cards until their credit history improves. They also predict that those who have credit cards and get approved for new ones will likely pay a higher price in fees and associated charges. Card holders are urged to protect the cards and credit history they have. Using credit cards for a few purchases each month and then paying off the balance in full will help to ensure your credit card remains active and in good standing. Inactive cards are at risk for being closed by the lender to reduce risk. Using your credit cards responsibly now will help ensure you will retain your creditworthiness in the future.
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