Finally, change has come to the credit card industry after President Obama penned into law the long awaited Credit Card Reform Act. This legislation has been one of the fruits of a country in the midst of an economic impasse making real decisions about its future. Frankly speaking, this legislation is long overdue and should have been put in place before we got into this mess in the first place. The fact remains that it will shield consumers from the hungry hawk-eyed credit card issuers who have been allowed to run wild over the years.

So what shall this legislation really mean to you the consumer? First, the Act will ensure that credit card issuers give the card holders a 45 days notice before they raise interest rates unlike in the past when they did so on their own terms. Though some people expected immediate relief from their burdens sooner, the Act is going to take effect nine months from the date of signing. However, this change will finally help protect you in future. Another very significant change is that you will now find it easier to pay your bill since credit card issuers will have to accept payment through the internet, traditional mail and telephone without charging you any convenience fee.

Lateness to make payment should no longer be stressful to you, this is because you card issuer will have to give you a 60 days grace period before raising your interest rates. After the 60 days are over, the credit card company will surely raise you rates. However, your old rates will be restored if you pay your minimum balance for at least six months consecutively.

The popular promotional rates will be allowed to continue though they must be in effect for at least the first 6 months. On the same line, credit card issuers cannot raise interest rates in the first year. Another thing that is guaranteed to go is the archaic practice of giving the customer a fixed hour to pay e.g. by noon. the card issuers are now to receive payment until 5.00PM which is the new cut off rate for paying on time.

Interestingly, persons under the age of 21 years will find it hard to get credit cards since they shall be expected to prove they can repay debts or have a cosigner to assume responsibility on their behalf. Lastly, the fine print is finally out. Now card issuers to use 12 point font on all their statements, bills and applications. Finally, some relief for the consumer!