Newly proposed government legislations hope to give consumers a better idea of the costs of using a credit card before applying.  This information includes the exact credit line and interest rate that is currently only provided after the application has been processed.  The assistant director for card markets for the Consumer Financial Protection Bureau, David Siberman believes the upfront information will help consumers make a more educated decision in choosing a credit card most suited to their lifestyle.   

Siberman said, "When the costs and risks of a credit card are clear, consumers generally will make wise decisions about borrowing." 

Although the Consumer Financial Protection Bureau cannot limit consumer's use of credit cards nor control their interest rates, several changes are planned to keep them more informed about their debt and credit card policies.  Along with the early disclosure of interest rates and credit lines, the bureau plans to augment the way rates and fees are displayed in credit card solicitations.  In addition, more regulations clarifying legal disclosures are in the works.   

Such changes are an extension to new credit card regulations that went into effect the previous year.  These regulations mandated that monthly statements include additional information involving the pay off the accounts.  Card issuers must now show how long it would take to pay off a debt while only making minimum payments, how much interest would be paid over a certain period, and how much a cardholder must pay to be debt free in three years.  Data provided by academics, regulators, credit bureaus were used to determine what changes were necessary to keep consumers more informed.   

Early data shows the changes are helping consumers with managing their debt.  A phone survey conducted by market research firm Synovate showed that approximately a third of the respondents noticed the changes on their bills, made larger monthly payments, and used their credit cards less frequently.  The same number of respondents also said the rules made it simpler to make their payments on time.