Many of you probably already know that a credit card legislation passed the Senate yesterday. Allow me to give you the nitty-gritty on how this legislation really works. Sure, at first glance it is yea for consumers. But remember what your parents always said "Read the fine print."

Hooray for Consumers:

• Restrictions on Increasing Interest Rates: Generally, banks must wait until you are 60 days late on the minimum payment to raise the interest rate of your existing debt.
• 45 Day Notice: Credit companies must give 45 day notice before raising your interest rate.
• Notice for any Changing in Terms: This is excellent. This keeps the companies from screwing you out of any of your loyalty points or rewards programs without warning.
• 21 Day Bill: The banks have to send you the bill NO LATER than 21 days before it is due. This keeps them from using time on their side to collect late fees as the sneaky companies have been doing.
• Late Fees: The companies cannot charge you late fees if the bill is paid at 5pm instead of 8am. Or if the due date is on a Sunday or Holiday...this now is in favor of the consumer.
• High-Interest Debt First: This is one of my biggest pet peeves about the credit industry. From now on, credit card companies have to apply your payment to the higher interest debt first.
• Under 21, Good Luck: If you are under 21, you have a parent, guardian, or spouse co-sign. I know my kids won't get one!

While there are numerous other points to this bill, these are the highlights and how they affect us. While I don't think credit card companies are all bad, I just don't see the point in using them in daily life. That being said, credit cards are good if used correctly. For instance, American Express extends the life of a product's warranty by one year if you purchase it with an American Express. So you can believe I buy all my electronics with it!