What is a key requirement of the Truth in Lending Act regarding credit cards?

The Truth in Lending Act (TILA) was designed to promote informed use of consumer credit by requiring disclosures about its terms and costs. A key requirement of TILA as it pertains to credit cards is the disclosure of minimum payment amounts. This requirement ensures that consumers are aware of the minimum payment they must make each month, which helps them understand the terms of repayment and the potential costs of carrying a balance. By providing this information upfront, TILA enables consumers to make better-informed financial decisions regarding their credit card usage, including the impact of interest if they do not pay their balance in full.

Other aspects of consumer credit, like limiting interest charges or mandating credit limit increases, are not part of the TILA's requirements. Additionally, while immediate approval upon application could be a feature of some credit card offerings, it is not a standardized requirement under the Act. Therefore, the requirement for disclosing minimum payment amounts stands out as a critical part of the transparency objectives outlined by the Truth in Lending Act.