Considering the very fact that several new rules have been introduced by Credit Card Act, Federal Reserve Regulations and the Dodd-Frank Act, it is very important for credit card holders to learn how to manage their cards in an efficient manner in light of the new changes. Following are the nine latest credit card tips that you will find very useful in this regard.

Use Debit Card Or Cash For Small Purchases

If you have to make small purchases, especially something that costs you less than $10, you are advised to use cash or debit card. As per the new laws brought by the Dodd-Frank Wall Street Reform and Consumer Protection Act, vendors and merchants are not allowed to accept credit cards if the purchase amount is less than $10. If they do so, they can be penalized. It is however important to note that this minimum limit does not apply to debit cards. Therefore, make sure you always carry your debit card in your wallet or at least some cash because you will no more be able to use your credit cards for small purchases.

Never Forget To Review The Disclosure Box

Credit card holders are also advised to review the disclosure box thoroughly before they sign up for new cards. As per the new rules introduced by the Credit Card Act, it is now legally mandatory for all credit card companies to disclose all the terms and conditions clearly to the consumers. There must not be any hidden terms or expenses. They must tell you everything in advance. Therefore, while you are shopping around for the best deal, you must read the information provided in the ‘disclosure’ box thoroughly.

This will help you get the true picture and you will be able to make an informed decision. For example, many companies try to attract customers by claiming to offer an unbelievably low rate. You can check their reality in the disclosure box. In the disclosure box, you may find that the low rates are actually a trap and there are several ‘conditions’ that apply, which actually make the offer a costly one.

New Rules For Those Who Are Under 21

As per the new laws, it has now become a little more difficult for consumers who are under 21 years of age to obtain a credit card. At present, there are many under-21 credit card holders who had obtained their cards through co-signers, but it is no longer mandatory for credit card issuers to provide the co-signer option to young applicants. Though some companies still accept co-signers, the latest survey says the majority of companies do not permit the co-signing option.

Under-21 applicants must submit proof of steady income in order to obtain a credit card. Alternatively, they can apply for a secured credit card by depositing a certain amount of cash with the credit card issuer; the amount of deposit becomes the maximum credit limit for them. It means you will not be able to use more than the amount of money you have deposited. If you cannot afford to make a cash deposit, you can still obtain a secured credit card by putting a valuable asset as collateral (security). The policies and procedures that companies follow for under-21 applicants usually vary significantly from one company to another. Therefore, you are advised to do the basic homework thoroughly before you submit your application.

Keep Your Card Active

Credit card holders are also advised to keep their cards, especially the ones they do not want to lose, always active. If your card is sitting idle and remains inactive for a long time, the issuer has the legal right to reduce your credit limit. They can even close your account if they find it unprofitable. However, it is important for you to keep in mind that the new laws prohibit issuers from charging any ‘inactivity fees’. You cannot be held liable to pay a penalty fine just because your cards are not in use for a long time.

But, unwanted shutdown is still a possibility. The regular use of your credit card can also prove to be very helpful in maintaining and improving your credit health provided you pay off the balances in full every month. Timely payment of debts contributes to 35% of your FICO score. It does not matter how much you are paying. Even if you use your card to make a small purchase of $15 and pay it off in a timely manner, it will add a positive entry to your credit report.

Keep The ‘Agreement Summary’ Safe For Future Use

As per the new Federal Reserve regulations, companies must also provide a one-page agreement summary to their credit card holders. This summary page must be provided in addition to the complete agreement itself. The key points of the agreement must be highlighted clearly in this summary page. Make sure you keep this page safe in a file, as you may need it for future reference.

Be Aware Of The Latest Credit Scam Tricks

Scam artists these days are coming up with new tricks that you must be well aware of. For example, one of the latest scams goes like this – you receive a telemarketing call, where you are informed that you are a prize winner if your Master card number starts with the digit ‘5’. When you check your card number and realize that you are a winner because your card number does start with a ‘5’, you do not mind providing crucial information to the caller, such as your complete credit card number. The caller asks for your private information on the pretext of ‘verification’. What the credit card holders do not realize is that all Master card numbers start with a ‘5’ and all Visa card numbers start with a ‘4’. American Express card numbers start with a ‘3’.

Never Ignore Notices, Letters, And Statements From Credit Card Companies

Now that the new Credit Card Act is in place, issuers must send a notice to you at least forty-five days in advance before they make any significant changes, such as increase in rates and fees or an increase in the minimum monthly payment. However, it is not legally mandatory for credit card companies to announce all the changes in advance.

Certain changes, where the 45-day advance notice rule does not apply include closing an account that remains inactive for a long time or reducing credit limit. Therefore, credit card holders are advised to read all emails and letters from issuers as soon as they get them so that they can plan accordingly. For example, if you receive a notice that the rates are going to increase, you will have forty-five days to take actions; for example, you may want to switch to another company that is still charging a lower rate.

Obtain Your Credit Report Free Of Cost Every Time You Get Rejected For A Credit Card

As per the new laws introduced by the Dodd-Frank Act, you can now request for a free credit report every time you get rejected for a loan or credit card. These laws are effective from Jan 1, 2011. All lenders and credit card issuers are now legally obligated to inform the applicants about the reasons for rejection. You can then approach the three major credit bureaus and request them to send free credit reports to them; tell them that you want to see why your applications for new credit card got rejected. In general, you are legally entitled to at least one free report every year.

Interest Rates And Fees Can Be Negotiated

Credit card holders must also know that the interest rates and fees on their cards can be negotiated. You can even request the issuer to waive off certain penalty charges. The key point that is in your favor here is that all credit card companies want to retain their good customers. Therefore, when you notice a penalty charge (such as, a late fee) on your monthly credit card statement, you can give a call to the company and request them to waive off the charge. If the caller says that they are not authorized to honor such requests, you should ask them to forward the call to someone who is authorized.

If you have a decent payment history and this is the first time you have been charged with a late fee, the credit card company may consider waiving off the fee. Likewise, you can also negotiate better rates. The best negotiating strategy is to tell the company that there are a few other companies out there who are offering better deals to you. This way, the company will realize who the ‘boss’ is. You can win better deals through negotiations if certain factors are in your favor, such as an impressive credit report, steady income, and other such things.

Last, but not the least, credit card holders are also advised not to apply for new cards, especially when they know that they are not eligible. Rejections affect your credit score negatively. Besides that, even too many enquiries for new credit can also damage your FICO score.