2010 Obama Credit Card Government Act – Will You Save with a Lower Interest Rate?

Posted on | February 26, 2010 | No Comments

Many Americans are still very confused by the 2010 Credit Card Act, and are not aware of how the Act will affect them. Unfortunately, the Act is not going to lower your current interest rates, but it will keep them where they are. Some of the new rules for credit card companies that fall within this Act limit the company’s abilities to raise rates within the first year of a new card, and limit their abilities to switch billing cycles which in the end will save you money.


The new Act prohibits credit card companies from increasing the rates on your cards due to missing payments of others things like power bills or cell phone bills. Likewise, when you make a purchase that exceeds your credit limits you will not longer be charged a fee unless you have signed agreeing to this in the beginning.

While the new Act will not completely lower your interest rate, it is going to add a number of rules to protect you as a consumer and save you some money in the long run. Since they will not be able to adjust your billing cycle and make money off of late fees, or adjust your interest rates for the first year and gain money that way, in the long run you are saving money from the new rules. The current Credit Card rules are not exactly fair, and nor do they protect the consumer so this Act was put in place to eliminate the unfairness and begin to protect the consumer more.

Author: Sylvia Wayne

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