This month, the Credit Card Act of 2009, which started its roll-out in August of 2009, is all set to move into its second phase, a move which will introduce a range of changes for borrowers.

Among the new regulations is a restriction on creditors, which would not allow then to raise the interest rate on cards within the first 12 months of the activation of a new account. Also, there will be a totally outlawing of the so-called double-cycle billing system, under which interest is charged even on debt that has already been paid-off.

"In the past, a credit card uses a balance from a previous billing cycle to calculate interest, and now going forward they're only going to be allowed to use balances on the current billing cycle. The banks have lost that flexibility and in doing so, they've lost the ability to grant credit to consumers who are on the margin," said Michole Mustard of Credit Karma, a financial information firm based in San Francisco.

The second phase of the Credit Card Act will be effective starting February 22.