subject: 6 Ways to Use Credit Cards According to the New Credit Card Act [print this page] From February 22, 2010 the new credit card laws have been implemented. These laws would prove to be beneficial to the consumers as there won't be a frequent increase in interest rates, rules to state the terms in simple language and decrease in the number of unfair billing. And students below 21 according to the new credit card law have limited opportunity to own a credit card unless they provide their income proof.
Though the Credit Card Reform is based on pro consumer interest but the consumers should also be capable of handling his credit cards responsibly. If the consumer fails to manage its credit card efficiently then he might incur debts. In this case it would be advisable to settle credit card debt.
6 ways how to use credit cards:
1. Be aware of the rules First time as well as the veteran cards holders should have a completely knowledge of the new rules. You can immediately file complaint with the Fair Debt Collection Practice Act and at State Attorney General's office if any of the enforced rules have been violated by the credit card companies.
2. Scan through the fine prints In order to avoid missing out on facts go through the fine prints carefully before you plan to get a new credit card. Once you sign on the terms and conditions you would not be able to complain that you have been unaware of the stated facts. Before you sign ensure to read the entire documents and points thoroughly.
3. Read about all credit cards offers Read through the offers provided by the new credit cards before you apply for the card.
4. Get aware of the credit card limit Credit card limits have been abruptly lowered by the creditors. Therefore it would be better to be aware of your credit limit. With the decrease in your credit limit the balance on your card would increase along with that the utilization of credit would also rise. But this can have a negative influence on your credit score. As a result you should verify your credit limit. In order to retain your credit score you have to pay off your balance each time your credit limit gets lowered.
5. Maintain documents of payments Try to maintain evidence of your payments and ensure that the agreements are in written documents. In this way you can avoid discrepancies that might pop up later. Once you have paid your bills make sure that you scrutinize the credit report for the updated account status. In case the account status doesn't get updated it might tarnish your credit report. If your credit report is ruined then the creditor might raise the interest rate.
6. Acquire a good credit score With the introduction of the new credit law it is crucial to maintain a good credit score. It would be near to impossible to acquire a new credit card if your have low credit score.
6 Ways to Use Credit Cards According to the New Credit Card Act
