In May 2009 Congress passed Obama’s Credit Card Reform Act in to provide relief to Americans that are going into credit card debt because of the bad economy.

The credit card reform goes into full effect in Febuary 2010, here are some immediate benefits you can expect to see:

• Banks will not be allowed to increase interest rates on balances that you already owe – at least for the next 60 months.
• Card issuers will be required to give you at least  45 days of advanced notice before raising rates and the new rates will only affect new purchases.
• Your payments made over the minimum will always be applied to the balance of the highest rate so you pay it off quicker.
• Banks will no longer be allowed to charge fees for making payments by phone and are required to make it easier for you to pay when you can.
• There will be new information available on your monthly statements showing how much interest you are paying and how long it will take to become debt free with your current payment.
• You will have at least 21 days after receiving a bill to make a payment.

There are some other changes coming with the credit card reform bill.  Students will now have a harder time getting a new card and must prove that they have sufficient funds to pay it off or family willing to co-sign.

Remember, if you are more than 60 days late in making a payment, you forfeit all the new protection of the credit card reform.

Start keeping an eye on your statements leading up to February and the months after, some card issuers are taking advantage of the grace period by making changes to rates now.

A credit card can be a great asset or a huge liability – use it wisely and earn free rewards flights, points, and free stuff – Don’t help the rich get richer!