Eight protections (among a number of others) include the following. Here is the first protection:

– Protections against rate increases for future transactions. The Credit CARD Act prohibits credit card lenders from increasing the interest rate that applies to the balance you’ve already incurred on your credit card, a practice known as "retroactive rate increase". There are several exceptions to this rule, which are the following:

(a) Varaible rates – if it is a variable rate card, (e.g. prime plus 7.0%) then the rate can change on all purchases/cash advances when the index changes;

(b) Teaser rates – a lender may raise the rate after the expiration of a teaser rate, but only to the post-teaser rate previously disclosed. Also, teaser rates cannot last fewer than six months.

(c) Sixty-plus days late – a retroactive rate increase on existing balances is permissible as a penalty rate when you are more than sixty days late in making the required minimum payment. NOTE: You can get the old non-penalty rate back and reinstated if you make the next six months worth of minimum payments on time.

Special thanks to the National Consumer Law Center’s "Guide to Surviving Debt", 2010 edition, available at www.consumerlaw.org for a mere $20.00 or so. I highly recommend it.

I have another post "Credit Cards: Things to think about before getting a new card…"

But here are four more things to think about – and probably these are the four most important TIPS anyone can offer when obtaining a new credit card.

– Look for the grace period – Credit cards DO NOT HAVE to offer a grace period during which you can pay off credit purchases (paying it in full) without incurring finance charges. Note that cash advances usually don’t ahve a grace period. Without a grace period, finance charges begin accruing immediately and a low rate may actually be higher than it looks.

Under the new CARD Act of 2009, lenders must mail your credit card statement at least twenty-one days before the end of the grace period. Of course, a grace period that is even longer is more beneficial. If you are running very close to the deadline, you might consider paying, at least for that month, over the internet or by phone. Under the new CARD Act, a lender can only charge you for paying by phone if you need the help of a live customer service representative.

-Watch out for bait & switch offers – Some credit card leners will send you an offer advertising a low-interest credit card wtih a high limit. However, nestled in the fine print in the offer is a less attractive, more expensive card if you don’t qualify. The substituted card often has a higher interest rate, more expensive fees, and/or a lower credit limit. If what they send you is not what they advertised to you, send the card back, certified mail, return receipt requested, along with a letter explaining your rejection of the card.

-Review and compare – BEFORE you send back the credit card application make a photocopy of the front and back of the application including the "disclosure boxes". When you receive the credit card, then compare the new disclosures you get with the card to the credit card application disclosures and make sure that they are the same.

-Cancel the credit card if you discover terms you don’t like – You don’t need to keep a credit card if you don’t like the terms. If the lender changes the terms for your card, you have the right under the Credit CARD act to reject the changes and close your account. If you have used the card you need to pay off the blance.

Many thanks to the National Consumer Law Center’s "Guide to Surviving Debt", available at www.consumerlaw.org for only about $20.00. You should also consider taking a look at our sister website www.life-after-bankruptcy.info.

This is part two of a two part series. Lets face it, credit cards have all sorts of new enticing promotions. Frequent flier miles, "cash back" promotions, school contributions, etc.

Adding to the difficulties is that it is difficult to shop for a card. Fees and high post-teaser rates are buried in the fine print and not well disclosed.

Here are some additional things to keep in mind when trying to compare credit cards:

– BIG ONE! – Trick cards – A creditor who acquired a prior credit card lender may offer you a new card – and then trick you by putting the old credit card lender’s debt on the new card, perhaps at rates less advantageous than you were previously paying.

– Look carefully at the interest rate, but recognize that the interest rate can EASILY change. Note that after the teaser rate expires, there will likely be a new rate. Find out what that new rate will be.

– Penalty rates – Credit card contracts, including those that advertise low rates, provide in the small print that our interest rate increases if you make a late payment or go over your credit limit. There are two distinctions here. If you are 60 or fewer days rate, the new penalty rate can only apply to future cash advances and purchases. If you are more than 60 days late, the new higher penalty rate can apply to existing balances of purchases/cash advances AND ALSO it can apply to any new purchases.

-Fees – Find out how much you will be charged for all sorts of fees. Here are a few ideas. Late fees, over-the-limit fes, annual fees, membership fes, cash advance fees, balance transfer fees, even fees for buying lottery tickets.

This post is largely thanks to the National Consumer Law Center’s "Guide to Surviving Debt" a 2010 publication available for a mere $20.00 from www.consumerlaw.org. Buy it – it is a fantastic book.

Lets face it, credit cards have all sorts of new enticing promotions. Frequent flier miles, "cash back" promotions, school contributions, etc.

Adding to the difficulties is that it is difficult to shop for a card. Fees and high post-teaser rates are buried in the fine print and not well disclosed.

Here are things to keep in mind when trying to compare credit cards:

-Avoid accepting too many credit card offers – There is rarely any good reason to own and carry more than two credit cards.

-Avoid "store cards" like Good Guys Video, Bon/Macy’s, Nordstrom, Sears and JCPenny cards – why do you need these? Is there anything at Sears or Nordstroms that is essential to your present daily life?

-BIG ONE! – Avoid subprime credit cards – Avoid credit cards which advertise themselves as helping with "bad credit". Some of these credit cards are "fee harvesters" with low credit limits and so many fees that you couldn’t even charge any purchases to the card because the card was already maxed out when the account was opened.

This post is largely thanks to the National Consumer Law Center’s "Guide to Surviving Debt" a 2010 publication available for a mere $20.00 from www.consumerlaw.org. Buy it – it is a fantastic book.