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Tips for Taking Care of Your Credit Score

Drawing of credit report Credit card users think that managing a credit card can be quite easy. After all, most credit card companies make it seem very appealing. However, using your credit card requires following more than the usual rules---shop all you can, use your credit cards wisely and always pay on time. However, the rules and policies that govern the use of credit cards change from time to time. As these rules change, the number of new protections and loopholes will increase a lot. This is why it is best for consumers and credit card users to be aware of such changes.

To give you light on the latest change of rules in using credit card, here are some simple credit card tips for 2012 that will help you get started:

  • For small purchases, pay with cash or debit. In the new act, the vendors and business owners are given the chance to put a minimum purchase amount that is applied to credit card transactions. The minimum amount for every credit card transaction is $10. However, this limit is not applicable to debit card transactions so you are free to use cash or debit in covering such purchases.
  • If you are below 21, it is best that you familiarize yourself with the rules of getting a credit card. For 21 years and below, you can apply for a credit card if you have a sufficient income or asset, or if you have a co-signer. There are some credit card companies which do not offer a co-signing option. Before applying on a certain credit card company, know the procedure and laws governing its application first.
  • Keep your credit card agreement summary. Aside from the credit card agreement, credit card holders should also get a one-page agreement summary. In this summary, you can get the key information about your contract. This should be kept securely for future reference.
  • Monitor any changes in your existing account. There is an act which tells the credit card companies to provide a letter of notification of changes to their credit card holders 45 days before these changes take effect. This applies to changes in minimum payment and many other changes. However, this is not applicable to all changes. Credit limit reductions and account closures are some changes that are not covered by this act.
  • Make use of the credit cards you do not wish to lose. Credit card companies are prohibited to charge users inactivity fees. However, they are given the power to shut down an account if it has been inactive for a certain period of time. We cannot tell you any established ways on how you can prevent the shutdown of your account however you are greatly advised to use your credit card regularly to avoid being shut down.
  • Take care of your credit report. Maintaining a high credit score is a big YES when using credit cards. If you wish to obtain loans and other forms of credits, it is best that you take good care of your Credit Report. For people who have no plans of applying for a new credit, it would still be best to maintain a high credit score to avoid paying costly house rents and car insurances.