In May 2009, the Senate has passed a new legislation for credit cards. The new laws have lots of good news for cardholders. However, the only bad thing is that most of the new credit card rules are going to be applicable only from July 01, 2010. Still, it is always wise to be well aware of how you can benefit from the new rules. Following is a brief rundown about it.

Pay Your Bills In Time And Enjoy Lower Rates
As per the new laws, the credit card companies have been instructed to lower the interest rates for those consumers who pay the minimum amount due in a timely manner for at least 6 consecutive months. This way, the government bill actually encourages good financial planning.

The Companies Must Send The Bill In Advance  
As of now, most consumers are not aware of the actual due date of the payment. The companies send the bills just a couple of days in advance, which makes it very difficult for the cardholders to pay the due in time. As a result, they are slapped with a substantial amount of late fee. However, the new credit card rules have now made things much easier for you, as it mandates the companies to send the bill at least twenty-one days before the due date. So, you no more have to rush. You will have three weeks to arrange the payment.

Now There's An Extra Day To Make The Payment     
Another good news is that now you can make the payment till 5 O'clock in the evening on the due date. Besides that, if the due date is a holiday or weekend, you will get a full extra day to submit your check. The companies will be able to charge the late fee only after the very next business day.

No More Arbitrary Increase In Interest Rates
The new credit card rules have also made sure that no company could increase the rates arbitrarily whenever they want. You may be slapped with a higher rate of interest only if you are late in paying the minimum due. So, make the payments in time and the interest rates will never be raised on your credit card. If the company must increase the interest rates, the new laws require them to give an open notice pertaining to the same at least forty-five days in advance. This way, you will have almost one and a half month to decide how you are going to avoid the change. You have enough time to consider switching to another company.

As of now, companies allow you to exceed the maximum limit - it is just that they will be charging a substantial amount of penalty if you do that. Since there are no restrictions on how much you can spend, many people never get to realize when they have actually exceeded their credit card limit. They only come to know about it when they see that penalty fee on their card statement. Now, with the new credit card rules, it is mandatory for the company to inform you that you are going to exceed your limits. You will have to sign a document, agreeing to the terms in advance, before you start overspending.