Paying off credit card balances: New legislation gives cardholders an extra week

[forum_admin]

No law can substitute for credit discipline

By Humberto Cruz

September 13, 2009

New federal rules help protect consumers, but prudent use, including paying off balances monthly, is always the best route.

Credit card users with money smarts and discipline can protect themselves better than any legislation can.

Initial provisions of the federal Credit Card Accountability, Responsibility and Disclosure Act took effect in August. They require banks to give cardholders longer notice before increasing the interest rates on their plastic. And cardholders can opt out as long as they stop making charges and pay the balance under existing rates within five years.

That's all good, of course. But card users who pay their bills in full never have to worry about interest rates. And if you arrange to pay your credit card statement automatically from your checking account, payments will never be late.

The new legislation also gives cardholders an extra week between the time they get their bills and the due date. Credit card issuers now must mail monthly statements at least 21 days before payment is due. Previously, it was 14 days. But that doesn't mean it's time to relax.

More...

No law can substitute for credit discipline -- latimes.com