The digital era · 2000–today
2009
The CARD Act
New US rules limit surprise rate hikes and fees on credit cards.
The Credit CARD Act of 2009 required 45 days' notice before most rate increases, limited late fees, and made statements show how long paying only the minimum would take to clear the balance.
💡 Why it made sense then
After the 2008 crisis, regulators saw card terms that were hard to understand and costly to borrowers.
🎮 In Journey Shares
Card statements come daily. The minimum is at least $25 or 1% of the balance plus interest and fees; miss it and there's a $30 late fee.
Ideas it gave us
- 🏦 Credit score
A credit score is a number, usually from 300 to 850 in the US, that estimates how likely a person is to repay debts. Higher scores get cheaper loans.
- 🧭 Debt avalanche and snowball
The avalanche and the snowball are two ways to pay off several debts. Both pay the minimum on everything; the avalanche sends extra money to the highest interest rate first, the snowball to the smallest balance first.
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