Understanding the new credit card rules

The Federal Reserve has issued final guidelines on the new credit card rules that go into effect Feb. 22. Here's a quick rundown of some of the highlights:

- Banks must give 45 days notice before raising the interest rate on future purchases.
- Your interest rate on existing balances can't be raised until you're in default for 60 days.
- Your monthly statements going forward will reflect how many years you'll be in debt if you only make minimum payments.
- Any annual fees must be capped at 25 percent of your card's limit.
- If you have multiple interest rates on your account, anything you pay over the minimum balance will be applied to the highest rate first. But beware, if you only pay the minimum, the money will still be applied to the lowest balance first.
- Teaser rates on new cards must be honored for one year.
- Two-cycle billing will no longer be allowed. This was a sneaky way that banks would charge massive interest if one month you paid in full and the next month you didn't.