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:
- 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.
- 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.
- Read about all
credit cards offers - Read through the offers provided by the new credit cards
before you apply for the card.
- 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.
- 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.
- 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.
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