A new set of credit card rules for 2010 took effect on February 22, 2010. The new credit card laws offer credit card consumers a new set of protections from what was deemed unscrupulous credit card practices.

The new credit card rules in 2010 include new rules on how and what credit card companies have to tell you about your credit card bill. There are also new rules on credit card rates and credit card fees.

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New Credit Card Laws 2010

• If you make more than the minimum credit card payment any month, your credit card company must apply the excess amount to the balance with the highest credit card interest rate.
• They must tell you how long it will take to pay off a credit card if you only make the minimum credit card payments.
• They must also inform you 45 days in advance if they will raise your credit card rate, change certain credit card fees or make other significant changes to your credit card account. However, credit card companies do not have to tell you 45 days in advance if you have a variable rate card or if you have an introductory rate credit card whose introductory period has expired.
• Your credit card company cannot increase the credit card rate for the first 12 months of opening your account. The exceptions include variable rate credit cards, introductory rate credit cards and if you’re more than 60 days late on a credit card payment.
• If your credit card rate does increase after the first year it will only increase for new purchases and not existing balances.
• You now have to opt-in for over-the-limit credit card transactions.  If you don’t, you cannot be charged an over the limit fee though your credit card transaction might be declined. If you do opt-in you can only be charged one over-the-limit fee per month. You can also opt-out at any time.
• Your monthly credit card bill will now include information on how long it will take you to pay off your credit card balance if you only make minimum credit card payments. Your credit card statement will also tell you how much you would need to pay each month in order to pay off your credit card balance in three years.
• If you are under 21, you will need to show that you are able to make credit card payments, or you will need a cosigner when applying for a credit card in order to open a credit card account.
• Credit card companies are now required to limit fees and they cannot total more than 25% of the initial credit limit. For example, if your initial credit limit is $500, the fees for the first year cannot be more than $125. Late credit card penalty fees are not included.
• Credit card companies must mail or deliver your credit card bill at least 21 days before your payment is due.
• Credit card companies cannot double cycle bill, they only impose interest charges on balances in the current billing cycle.

Looking for the lowest credit card rates? Compare credit cards offers here. Lowest Credit Card Rates.

American Express is offering special deals for their credit card holders. Some of the offers coming up in the near future include a $100 Bed, Bath & Beyond gift card that costs $50, a $200 Best Buy gift card that costs $100 and a $50 Barnes and Noble gift card that will cost you only $25.00.

American Express if offering different deals each day and you can sign up for weekly alerts to find out in advance what the sale times are each day. There is a limit of the number of deals available for each deal, usually between 25 to 100 depending on the deal.

American Express Corporate credit cards and prepaid cards are not eligible for these deals. For more information on American Express credit card deals visit American Express Daily Wish here: Daily Wish

Thinking of taking advantage of a balance transfer credit card offer you received in the mail? You might want to wait until after February 22, 2010 to do a balance transfer.  After February 22, credit card companies have to apply any extra principal paid to the credit card balance with the highest interest rate.

For example: You have a credit card balance of $10,000. For half the balance, $5,000, you are being charged a rate of 19.99%, the other half you are being charged a rate of 14.00%.

• Right now, if you do a balance transfer and pay down $5,000, the extra principal payment will be applied towards the balance that has a rate of 14.00%.
• After February 22, your credit card company will have to apply the $5,000 towards the balance that has a rate of 19.99%.

Applying any extra principal payments towards the balance with the highest credit card rate is only one of the new credit card rules that take effect on Monday.

For a complete list of new credit card rules that take effect on Monday read: “New Credit Card Rules - How the New Credit Card Laws Affect You.”

Credit card rates have been heading higher since the Credit Card Holders Bill of Rights was passed last year and the Federal Reserve’s new credit card rules were approved on December 17, 2009. Average credit card rates are going up even though the new credit card laws were passed to protect credit card users.

The new rules and laws were enacted to prohibit certain credit card acts and practices that were deemed unfair. The new credit card laws were also enacted to improve how credit card information and credit card rates were disclosed to consumers.

Credit card rates have been going higher because starting February 22, 2010, your credit card company cannot increase the credit card rate for the first 12 months of opening your account.

Even if your credit card rate does increase after the first 12 months, it will only increase for new purchases. The rate cannot be increased on existing balances. There are exceptions to these rules like if you are more than 60 days late on a payment.

In addition to credit card companies charging higher credit card interest rates, they have also been raising credit card balance transfer fees. Most credit card companies used to charge around three percent for a balance transfer.

Now the average balance transfer fee is around four percent and some banks even charge as high as five percent for a credit card balance transfer. Most credit card issuers don’t have a maximum fee cap for balance transfers. Factor in the fee and the zero percent credit card rate isn’t really zero percent.

The new credit card laws and credit card rules will help consumers, but will also hurt some consumers, especially those who payoff their credit card balances every month and those who prefer rewards credit cards. Credit card issuers have started charging monthly credit card fees if you don’t use your credit card for a certain period of time.

Getting a fixed rate credit card is a lot harder these days. Most banks have been pushing variable rate credit cards since variable rate credit cards will make more money for banks. You  can start your search for the best credit card rates right here at MonitorBankRates.com: Best Credit Card Rates.

A new set of credit card rules takes effect February 22, 2010 and you should be aware of the new rules. The new credit card laws are positive for consumers and offer consumers a new set of protections.

The credit card rules include new rules on what credit card companies have to tell you, new rules on credit card rates, credit card fees and credit card limits.

Looking for the best credit card rates? Search our credit card tables. Best Credit Card Rates.

Some of the most helpful rules for consumers is that credit card companies have to tell you how long it will take to pay off a credit card if you only make the minimum credit card payments. In addition, if you make more than the minimum credit card payment any month, your credit card company must apply the excess amount to the balance with the highest credit card interest rate.

The new set of credit card laws that take effect February 22, 2010 include:

• Telling you 45 days in advance if they raise your credit card rate, change certain credit card fees or make other significant changes to your credit card account. Credit card companies do not have to tell you 45 days in advance if you have a variable rate card or if you have an introductory rate credit card that expired.
• Your credit card company cannot increase the credit card rate for the first 12 months of opening your account. The exceptions include variable rate credit cards, introductory rate credit cards and if you’re more than 60 days late on a credit card payment.
• If your credit card rate does increase after the first year it will only increase for new purchases not existing balances.
• You now have to opt-in for over-the-limit credit card transactions.  If you don’t, you cannot be charged an over the limit fee though your credit card transaction might be declined. If you do opt-in you can only be charged one over-the-limit fee per month. You can also opt-out at any time.
• Your monthly credit card bill will now include information on how long it will take you to pay off your credit card balance if you only make minimum credit card payments. Your credit card statement will also tell you how much you would need to pay each month in order to pay off your credit card balance in three years.
• If you are under 21, you will need to show that you are able to make credit card payments, or you will need a cosigner when applying for a credit card in order to open a credit card account.
• Credit card companies are now required to limit fees and they cannot total more than 25% of the initial credit limit. For example, if your initial credit limit is $500, the fees for the first year cannot be more than $125. Late credit card penalty fees are not included.
• Credit card companies must mail or deliver your credit card bill at least 21 days before your payment is due.
• Credit card companies cannot double cycle bill, they only impose interest charges on balances in the current billing cycle.

Looking for the best credit card rates? Search our credit card tables. Best Credit Card Rates.

A loyal reader of MonitorBankRates.com alerted us to this deal.

Discover Bank is offering a $75 cash back bonus on their Discover More Credit Card. To receive the bonus you have to make $599 in credit card purchases within the first three months of being approved for the credit card.

Looking for the best credit card rates? Search our credit card rate tables to find the best card for your needs. Search Credit Cards

This offer is good until January 20, 2010, so you have to apply for the card before then. Once you have made $599 in purchases, the $75 credit card bonus will be applied to your credit card account within eight weeks.

There is also a 0% credit card rate introductory offer for purchases until July 2010 and a 0% balance transfer offer until November 2010.  The balance transfer fee under this offer is 4%. Once the introductory credit card rates expire the interest rate you pay will be between 11.99% and 17.99% depending on your credit.

If you’re late making a payment, the introductory period will end and the credit card rate can increase to as high as 29.99%, so don’t be late! The cash APR is a 23.99% variable rate.

Tip: If you are late making a credit card payment, call the credit card company and ask them to waive the late fee(s) and keep the interest rate the same. If you haven’t been late making a payment recently the bank will probably give you a break but you’ll never know unless you call.

There is also a 5% cash back bonus for certain purchases throughout the year and a 1% cashback bonus on all other purchases after your annual purchases exceed $3,000. The first $3,000 earn a cashback reward of 0.25%.

To apply for this credit card deal go to www.apply.discovercard.com and use Invitation Code: DAAG. You can also apply by phone by calling 1-800-210-9022.

Banks and credit card issuers have been raising credit card interest rates before the new credit card rules take effect next year drawing the ire of law makers.

The Senate Banking Committee chairman, Christopher Dodd, D-CT, is pushing legislation that would freeze credit card interest rates on existing credit card balances until the law takes effect.

Looking for the best credit card rates? Use our credit card search engine to find the best credit cards for your needs. Credit Card Search Engine

According to the Federal Reserve, the average credit card interest rate in the third quarter of 2009 is 13.71 percent. Credit card interest rates have been steadily climbing since the third quarter of 2008 when it stood at 11.94 percent. The fourth quarter of 2008 saw average rates rise to 12.03 percent. The first quarter of 2009 rates were at 12.97 percent and in the second quarter of 2009 rates rose to 13.31 percent.

Banks and credit card issuers have also been raising credit card fees and lowering credit card limits to better manage their risk. They are paying for their lax lending standards in the recent past.

The Federal Reserve reported that 9.55 percent of credit card loans have been written off by banks as bad debt, meaning they don’t expect to recover that money. The charge off rate for all banks in the first quarter of 2006 was only 3.14 percent. During the last recession, the high point for charge off rate was only 7.85 percent.

Even though credit card interest rates and credit card fees are headed higher, the total  outstanding credit card debt has been declining for the past four quarters. Revolving credit decreased 10 percent in the third quarter of 2009. Total revolving credit in the third quarter is $889 billion, down from $975 billion in the third quarter of 2008.

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Getting out from under a mountain of credit card debt isn’t an easy thing to do. Many people are able to consolidate credit card debt and eliminate credit card debt by putting together a financial plan.

You can do the same by putting together a realistic financial plan that tracks your monthly income and expenses.

Consolidating and eliminating credit card debt will be a long, hard process but it is possible with a little discipline and a plan. In the recent past you could refinance your mortgage to pay off credit card debt, but for most people that isn’t an option anymore. Which actually is a good thing, because you’re not eliminating your debt by refinancing your home, you’re just shifting the debt.

To start the process, come up with a monthly budget that takes into account all of your spending. Track every single purchase for a month - even the little incidentals like that daily cup of coffee at Starbucks. You will be surprised to see how much these little purchases add up.

When you have put together a list of your monthly spending habits, see what can be eliminated without too much pain. The idea is to create a budget that you can live with that isn’t too hard on yourself.  If you cut too much spending, you won’t keep to the budget and you’ll be back where you started. You can always decide to cut more later if you find the cuts you have already made aren’t painful.

The money you have cut from spending should be applied towards your highest rate credit card. In fact, only pay the monthly minimum on the lower rate credit cards. Once you have paid off the highest rate credit card, start with the next highest rate card. You can use a credit card payoff calculator to see the savings benefit.

Other options beside cutting expenses to pay off credit card debt is to consolidate debt into a bank loan. Bank loan rates are lower than most credit card rates. Also, by consolidating debt into one loan with a lower interest rate, your monthly payments will be lower. The money you save with a lower monthly payment can be applied towards the loan or put into an emergency savings account. Having six months of expenses saved can tide you over in case of a job loss in the family.

Getting a student credit card is going to be harder starting in February 2010 thanks to the credit card reform bill that was passed this summer.

The new legislation prohibits credit card issuers or banks from issuing credit cards to anyone under 21 unless they have an adult co-signer or proof that they can cover the monthly credit card payments.

The changes are actually a good thing for young adults who probably haven’t yet learned how to manage credit wisely.

Looking for a Student Credit Card? Use our Credit Card Search Engine to find Student Credit Cards: Student Credit Cards

Sallie Mae, the company that provides federal and private student loans for undergraduate and graduate students, did a study that found 84% of undergraduates have one credit card and 50% carry four or more credit cards. Young adults graduating with credit card debt with exhorbitant interest rates are creating a financial burden for themselves.

Now that you will probably be co-signing a credit card application with your child and you’ll be on the hook financially, you should make sure your child understands how to use credit to their advantage and not to their detriment.

A good place to start is to educate your child about credit first. The following are some tips on building credit.

Credit is a good thing when used properly and teaching your child how to use credit properly will benefit him or her for the rest of their life. Helping them build a credit history early on will raise their credit score and lower the rates they will be offered in the future, enabling them to get a lower mortgage rate when buying their first home.