By: Will Tumulty, CEO of Ready Financial Group

The new Credit CARD Act recently passed by Congress and signed into law by President Obama goes into effect just a few weeks from now on February 22, 2010. The CARD Act contains a number of provisions designed to make credit card disclosures more clear for consumers and to put limits on credit card banks’ ability to change terms and charge certain types of fees.

The law contains some of the biggest changes in the credit card industry in more than 10 years and there are several new rules of which you should be aware. If you have a credit card, or if you’re looking to get one, read below to find out what the law means for you and your wallet.

Here’s an overview:

Interest Rates

The CARD Act requires 45-day notice to increase interest rates and the interest rate can’t be changed in the first 12 months unless it was part of a promotional rate. Promotional, or “teaser,” rates have to last for at least six months following the opening of a new account.

Universal default – the practice of raising interest rates based on payment behavior on other accounts – is banned under the new law. The new rules also prohibit increasing the interest rate retroactively on charges already made, although if you’re more than 60 days late on a payment, this provision doesn’t apply. In addition, the prohibition on increasing interest rates doesn’t apply to variable-rate cards where the interest rate is pegged to move with an underlying rate like the Prime Rate.

Finally, if you don’t want to accept a rate increase you’ll have the right to say “no” to the rate increase, pay off your balance and close your card. If you decide to take this option, be sure not to use your card for any further purchases or the new higher rate will apply.

Payments

The new law requires statement to be mailed 21 days before the due date; the old rules only required 14 days. This rule is to ensure that people have enough time to get their bill and mail in their payment on time.

Under the new rules, you shouldn’t be charged a late fee if you can prove you mailed your payment within seven days of the due date. When the credit card company receives your payment, it has to be applied to your highest interest rate charge first and you can’t be charged interest during your payment grace period, eliminating a practice called Double Cycle Billing.

Fees

In addition to giving you extra time to get your payment in to avoid late fees, there are a few other new fee limitations under the CARD Act. The biggest one requires you to opt-in for over-limit coverage. Over-limit coverage is when the credit card company allows you to make a charge even if the charge puts you over the credit limit on your card – and they typically charge a fee for this.

Under the new rules you need to tell the credit card company that you want them to let you go over-limit and that you’re willing to pay a fee when you do. In addition, the new rules only allow one over-limit fee each billing cycle and set the maximum number of over-limit fees per over-limit occurrence at three (this can happen if you go over-limit and don’t make a big enough payment to get back within your limit for three billing cycles).

Finally, the Act limits the amount of first year fees that can be charged to your card to 25 percent of the credit line. Be aware that this cap doesn’t apply to avoidable fees like late and over-limit fees.

If You’re Under 21

It’s going to be harder to get a credit card. The new CARD Act rules require credit card companies to prove that people under 21 who they give a card to have the ability to make the payments on the card or have an over-21 co-signer jointly responsible for all of the charges made on the account.

The Bottom Line

Establishing and maintaining good credit is more important than ever. Although the new CARD Act rules will make credit card practices more transparent and consumer-friendly, if you don’t have good credit, it’s going to be harder to get a credit card.

To keep your credit in good shape, don’t borrow more money than you can afford to repay and always be sure to make your payments on time. Also, give yourself a credit check-up on a regular basis. You can take a look at your credit report and credit score for free (no strings attached) at Quizzle.com.

More Information on the CARD Act

If you’re interested in digging deeper into the new law, here are a few links that you might find useful:

• Wikipedia: Credit CARD Act of 2009
• Fact Sheet: Reforms to Protect American Credit Card Holders
• Understanding the Credit Card Accountability, Responsibility and Disclosure Act
• Credit CARD Act of 2009
• New Credit Card Rules

Coming up Next

New regulations limiting checking account overdraft fees. Banks charged nearly $40 Billion (with a “B”) in overdraft and bounced check fees last year – ouch!  Late last year the US Federal Reserve (aka, “The Fed”) established rules regarding overdraft fees that go into effect in the summer of 2010.

Banks will still be able to charge overdraft fees, but you’ll be able to opt out of some of them. If you’re looking for an account that’s better than checking with no overdraft fees ever, check out Visa prepaid cards at ReadyDebit.com.

Related Articles from the Quizzle Blog:

• Dealing with Debt: Which Debt Should You Pay off First?
• Why You Shouldn’t Wait for a Lower Rate on Your Home Loan
• 10 Common Credit Myths Debunked
• Are Retail Rewards Cards Really Worth It?
• 7 Ways to Improve Your Credit Score

Will Tumulty has over 10 years of experience in the credit card industry as a Vice President at a top five credit card bank and for the past four years as the CEO of Ready Financial Group – a partner company of Quizzle.com that develops cool new financial products to help you save money.

Our smart friends at the Federal Open Market Committee (FOMC) announced today that they will again hold its Fed funds rate at the 0 percent to 0.25 percent range. (What the heck is the Fed funds rate and why should I care?)

While the decision to hold rates at current levels was expected, the dissenting vote is significant, said Quicken Loans Chief Economist Bob Walters.

“The Fed’s decision to hold its Fed Funds Rate was in line with all expectations,” Walters said.

“It was significant that the Fed statement did again acknowledge that the Central Bank intends to holds the rate low for an extended period. This essentially squashed the belief among some that the Fed was likely to begin raising its rates by the spring. This is good news for consumers, but was tempered with the confirmation that the Fed will exit the mortgage-backed security market by March. This is significant as their exit could send rates higher.”

The following is an official press release from the Fed regarding its decision today, plus a translation of all the financial gobbledygook from Bob Walters:

—

FEDERAL RESERVE Press Release
Release Date: January 27, 2010

Fed: For immediate release

Bob: Now

Fed: Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the deterioration in the labor market is abating. Household spending is expanding at a moderate rate but remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software appears to be picking up, but investment in structures is still contracting and employers remain reluctant to add to payrolls. Firms have brought inventory stocks into better alignment with sales. While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.

Bob: This paragraph is like many we’ve seen before. The Fed is saying that things are starting to get better, but that we aren’t out of the woods yet. In other words – Things are still bad, but less bad then before. If things keep getting less and less bad – one day they will be good…

Fed: With substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time.

Bob: This simple little sentence is very important. Here’s where the Fed is saying that they don’t see inflation (rising prices) increasing anytime soon. They believe that because there is “substantial resource slack.” “Resource slack” is financial-ese for lots of people sitting at home unemployed and a bunch of factories sitting around idle.

Fed: The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. In order to promote a smooth transition in markets, the Committee is gradually slowing the pace of these purchases, and it anticipates that these transactions will be executed by the end of the first quarter. The Committee will continue to evaluate its purchases of securities in light of the evolving economic outlook and conditions in financial markets.

Bob: This is also an important paragraph. The Fed purchased 80 percent of all conventional (Fannie and Freddie) mortgage bonds last year. They’ve purchased almost a trillion dollars of mortgage bonds so far. They are saying here that they will finish that buying spree by the end of March. Many people wonder what will happen to mortgage rates when the buying spree ends. Looks like we’ll find out in March/April.

Fed: In light of improved functioning of financial markets, the Federal Reserve will be closing the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, the Primary Dealer Credit Facility, and the Term Securities Lending Facility on February 1, as previously announced. In addition, the temporary liquidity swap arrangements between the Federal Reserve and other central banks will expire on February 1. The Federal Reserve is in the process of winding down its Term Auction Facility: $50 billion in 28-day credit will be offered on February 8 and $25 billion in 28-day credit wil be offered at the final auction on March 8. The anticipated expiration dates for the Term Asset-Backed Securities Loan Facility remain set at June 30 for loans backed by new-issue commercial mortgage-backed securities and March 31 for loans backed by all other types of collateral. The Federal Reserve is prepared to modify these plans if necessary to support financial stability and economic growth.

Bob: Last year, when the economy wasn’t looking so hot, the Fed went crazy creating all kinds of ways to lend money (since the private markets had essentially stopped). They named these things with cool acronyms like TARP and TALF and ACPMMFF. The Fed is starting to wind these things down. This is good news because it means the markets are (kinda) starting to function again.

Fed: Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, who believed that economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted.

Bob: Hold the presses! Everyone did NOT agree! Thomas Hoenig said “No” when the votes were cast. Tom thought the Fed should have raised short term interest rates because the economy no longer needs such aggressive short term rates (currently 0 percent).

With a national unemployment rate of 10 percent, it’s no surprise that more than half of Americans pick unemployment as the top economic issue facing the country today, according to a new CNN poll.

Chances are if you haven’t lost your job during the financial turmoil of the last couple of years, you know someone – likely several someones – who has.

Competing with a lot of people for very few jobs isn’t fun, but there are things you can do to help your chances.

Because the first impression potential employers typically have of you is your resumé, make sure it’s in tip-top shape. Here are three ways to help make your qualifications stand out:

1. Use Strong Action Verbs

Time to throw out old standbys like “Responsible for” and “In charge of.” They’re passive words that don’t do you justice. When listing details about your qualifications, make sure each bullet point leads with a strong action verb, like “Managed,” “Created” and “Developed.”

Strong action verbs give your qualifications power. They make you a leader rather than a follower. They show significant contribution instead of adequate work.

For a list of action verbs that will give your resumé some muscle, check out WriteExpress.

2. Quantify Your Efforts as Much as Possible

It’s one thing to say you were a maintenance manager responsible for servicing an apartment complex. It’s quite another to say you managed the complete maintenance of 80 apartments, completing an average of 12 work orders a day.

Quantifying the work you’ve done brings life to your resumé. It shows that you have pride in your work and helps a hiring manager better visualize how your contributions can benefit a company’s bottom line.

Putting numbers to paper may be harder for some than others. Here’s where you might need to get creative.  Have your efforts saved a company money? Did you get your work finished faster than your co-workers? Did you improve the performance of a product or service? Do you bring customers in the door? All of these things can and should be quantified to show potential employers what you’ve done so they can get a feel for what you can do for them.

3. Tailor Your Resumé to Each Position

One of the top ways a resumé fails is when it’s not adjusted for the position for which it’s intended. For example, if you’re applying for a customer service position at a software company and the objective on your resumé states you’re interested in doing market research for an e-commerce business, your resumé falls short.

If you can’t take the time to tweak and tailor your resumé for the position for which you’re applying, why should a hiring manager take the time to find out who you are and what you have to offer?

What should you customize? To start:

• Your objective, if you have one.
• The positions you choose to list on your resumé.
• The responsibilities and details of each position.
• Coursework, certifications and licenses.

Your resumé should clearly tell a hiring manager why you’re right for the position for which you’re applying.

Finding a job is hard enough, let alone in an economy in which you may be competing with several hundred applicants for a single position. But if you take a look at all the ways in which you present yourself when applying for a job, including your resumé, you’ll find that the inches are everywhere.

More from the Quizzle Blog:

• 7 Ways to Improve Your Credit Score
• Dealing with Debt: Which Debt Should You Pay off First?
• How to Save Money While Spending Time with Friends
• 55 Money Saving Tips (Your Wallet Will Thank You)
• So You’ve Found Your Dream Home… Now What?!

On the job hunt? Don’t let your credit hurt your job prospects. Many companies are now doing a credit check on potential employees. So before you apply, make sure you check your credit situation at Quizzle.com, the only site that gives you both a free credit report and free credit score, no catches, no trial subscriptions, no credit card required.

By: Chris Klau

The following question is one that we get often at Quizzle.com, the free and easy way to manage your home, money and credit – all in one spot. To give you the best possible answer, we’ve brought in Home Loan Expert Chris Klau.

Chris has nearly 10 years of experience in the mortgage industry as Director of the Mortgage Insiders at Quicken Loans and works hard every day to provide trusted advice and home loan expertise to team members, friends and family, and external partner companies.

Q: I’ve been thinking about refinancing, but I think I’m going to wait until interest rates come down. Do you think that’s a good idea?

A: No one has the crystal ball to predict where rates will go, but when interest rates are historically low like they are now, you probably don’t stand to gain much by waiting. If you have a home loan program lined up that will save you money and has guaranteed benefits, I suggest taking action and securing that program.

Given the nature of the markets and the moves of the Federal Reserve, the odds of rates going down significantly are much smaller than the odds of rates potentially moving up significantly. You can roll the dice and gamble on snagging a slightly lower rate if you choose, but odds are against this happening.

Before you decide to wait, make sure you know what you’re risking. If you’re holding out for a 0.25 point lower interest rate, figure out how that translates to your monthly mortgage payment (or ask your trusted mortgage expert to do this for you). Often times, the point difference equates to a relatively small difference in your payment. When you analyze the risk-reward potential, you may find that waiting just isn’t worth it.

Keep in mind that mortgage guidelines are changing at a faster pace than ever before. The loan you qualify for today may not be available for you tomorrow. If you have the opportunity to secure something now that will improve your situation, take advantage of that opportunity!

For more tips and tools to help you manage your home, money and credit – including a free credit report, free credit score and free home loan recommendations – check out Quizzle.com.

More from the Quizzle Blog:

• Dealing with Debt: Which Debt Should You Pay off First?
• How to Save Money While Spending Time with Friends
• I’ve Found My Dream Home… Now What?!
• How to Make Your Home Loan Experience Go Quickly & Smoothly
• 10 Financial Resolutions for 2010

By: Jenny Zhang

For most of us who are first-time home buyers, home improvement isn’t something with which we have experience – nor do we have thousands of dollars to spend on construction crews to improve our homes. Chances are your first home isn’t perfect and you’ll likely want to make a few changes to suit your needs. So how can you do home improvement for cheap? Where do you even begin? And what improvements will help you get the biggest return on investment?

For all those answers and more, here are some simple (albeit somewhat labor intensive) solutions to some of your first-time home owner questions:

Keep up with the Joneses

The first thing to keep in mind when you do renovations is to make sure your improvements are appropriate for the neighborhood in which you live. If the neighbors don’t have in-ground pools, Jacuzzis and built-in saunas, then chances are you won’t get the return on investment for adding those to your home either. This same theory applies to the type of countertops, appliances and building materials you use.

Once you decide which rooms you want to renovate, the key is to find building materials that match the pricing for the neighborhood. After all, you don’t want your home to look too cheap or too expensive compared to the rest of the block. For actual renovations, my personal experience is that you don’t necessarily need to hire everything out. For home improvements that have room for mistakes, like ones that don’t entail messing with the gas lines, you can do it yourself relatively easily. All you need is Internet at the house and a basic understanding of how to Google for the rest.

Learn How to DIY

Not what you expected? Or maybe this sounds unhelpful? Truthfully, you really can learn nearly everything from watching instructional YouTube videos, and reading blogs and construction websites on how to do home improvement. I speak from experience. The first few steps may seem unnerving, but soon you’ll feel more comfortable with tearing apart cabinetry, installing new fixtures and removing walls.

Start Small

Begin with small, safe projects like painting or refinishing your floors. Then eventually when you feel more confident, research what you want to do thoroughly and go for it. The truth is you can save thousands of dollars by doing the work yourself. And being a homeowner often entails quite a bit of maintenance anyway, so learning along the way doesn’t hurt.

While construction can seem difficult for those who have never done this type of work, a majority of it doesn’t really require skill as much as the ability to lift heavy building materials. Double check all of your measurements before cutting into something and home improvement will only get easier as time goes on.

This article was originally featured on Quicken Loans Mortgage News, where personal finance writer, Jenny Zhang, specializes in writing about home buying, refinancing and money saving tips.