New Credit Card Law May Be Costly

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

15 Things You Should Always Buy at a Dollar StoreMore

Giving Thanks: Why Foreigners Find America AmazingAround The House

New Email Phishing Scam Targets Amazon ShoppersMore

50 Best Gifts Under $25 for Everyone on Your ListFamily

Why Washing Your Turkey Can Make You IllFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 7 Worst Things to Buy at a Dollar StoreMore

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

The 50 Hottest Toys of the Past 50 YearsFamily

30 Awesome Things to Do in RetirementCollege

It's safe to say that the credit card bill of rights represents a victory of consumers over banks. But the battle's not over yet. Three ways the new law could cost you.

According to some estimates, there are nearly 700 million credit cards in the United States: two for every man, woman and child. And nearly half of American households are carrying a balance.

So it was considered a great victory when Congress passed the Credit Card Accountability, Responsibility and Disclosure Act. Because this new law limits rate hikes and fees considered by many to be unfair.

This new law will sharply curtail the fee income banks were socking away from those credit card fees. But it also means they’re going to try to make up that income in other ways.

For example, now only about 20% of credit cards carry an annual fee. With income down from other sources, that number may increase.

If banks can’t make as much from other sources, one obvious way to make up the income is to raise rates: especially in the months remaining until the new law goes into effect.

And while the new law restricts some fees, it doesn’t affect others. For example, several big banks have already raised the cost of transferring your balance to another card from 3% to 4%.

Many of the new provisions won’t go into effect until February, so track changes in your cards by reading notices. Don’t like what you see? Go to any of dozens of websites that allow you to shop your cards in seconds. Compare credit cards at InterestMatters.com

Bottom line? The new credit card law is putting money in your pocket by taking it away from banks. They’re going to try to get some of it back. So between now and say the first part of next year, you do want to be vigilant, you don’t want to be afraid to shop around.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Ask Stacy: Why Is My Bond Fund Losing Money?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,726 more deals!