Since being signed into law by President Barack Obama in 2009, the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act has brought about many changes in how credit card companies operate. With the proper knowledge and understanding of these changes, you can take full advantage of the many pro-consumer aspects of this act.

According to MCU Vice President of Credit Operations Ahmed Campbell, some of the changes that credit cardholders should know about are as follows:

• Statements must provide cardholders with a chart showing both: (a) how long it will take to pay off the current balance if only the minimum payment specified in that statement was made every month (and the total amount that would have to be paid under those conditions), and (b) what the estimated monthly payment would be to repay the current balance within a 36 month period.
• Payments in excess of a minimum payment amount must generally be applied to the balance carrying the highest interest rate first (usually the cash advances balance).
• Credit card companies are generally prohibited from increasing APRs (Annual Percentage Rates) on existing card balances (unless the circumstances for such increases were previously agreed to).
• Cardholders must "opt-in" (give permission to their credit card company) before being assessed a fee for going over their credit limit.
• Companies must give cardholders a minimum of 45 days advanced notice before making any major changes to credit card agreements.
• Companies must maintain an Internet site on which they must post their written credit card agreements. These changes not only caused most credit card companies to increase rates and fees prior to the effective date of the CARD Act but will also lead to the creation of new and additional fees and practices by credit card companies, according to Mr. Campbell. Credit cardholders are advised to watch out for decreased credit lines based on inactivity, penalty interest rates and fees for failing to make minimum payments on time, and increases in annual fees. Ahmed also gave some helpful tips for credit cardholders who want to take advantage of this new legislation:
• Read your credit card statements carefully and compare the interest rates, fees, and charts contained on these statements to determine which card is the least costly, and transfer your balances to that card if possible.
• Refuse the option to be charged an overlimit fee (and stay within your credit limit instead).
• Get a gimmick-free, no-annual fee credit card from a financial institution you can trust, for example a VISA^® Card from MCU.

Get more information on the CARD Act and how it can affect you at www.federalreserve.gov/creditcard, and click here for more information on MCU VISA Cards today.