New Credit-Card Rules May Help You Save

A new credit-card law takes effect in February, and some of the changes may help you save money. Here’s what to expect.

Limit on rate hikes. Card companies won’t be allowed to raise rates on existing balances unless your payment is at least 60 days overdue. Your previous rate must be restored if you pay on time for six months in a row.

Rate stability. Your interest rate can’t be hiked for one year after you open a new account, unless the increase was disclosed up front. Temporary rates must last for at least six months.

Highest rate first. Card companies must apply any payment above the minimum to your highest-rate balance. This will help people who have low “teaser” rates on balance transfers but higher rates on new purchases.

No more universal default. Credit-card companies will no longer be able to raise your rate solely because you miss another lender’s deadline.

The law also eliminates surprise overlimit fees and improves disclosure, which may help you save more towards other financial goals.