2010 is the year many new regulations go into effect for credit cards, and while most help the card holder, some create loopholes for unethical credit card providers to exploit. Here are 10 tips to help you avoid being caught in one of these loopholes.
1. Get rid of your balance.
This is simple the most effective protection against a tyrannical credit card company because if you don’t owe them anything, then you can walk away any time the terms aren’t to your benefit. If you can’t pay off the balance completely, pay down as much as you can because some credit card companies are hiking rates on existing balances before the new CARD Act regulations take effect on February 22.
2. Shop local for the best credit card.
Look into credit cards from local banks and credit unions. These providers tend to be much more reasonable, and you can usually transfer existing balances to a new, lower rate card.
3. Use it before you lose it.
Credit card companies don’t make a dime off you if you don’t use your card, but they’re still paying for the account to stay open. To prevent the company from closing your account, use your credit cards at least once every 3 months or so to keep the account active.
4. Check your credit score and credit reports regularly.
Keep up on your credit reports from the 3 major agencies (free from AnnualCreditReport.com , NOT free credit report .com!) and know your score if you might be borrowing money in the near future. Your credit report will determine your score. Make sure you don’t have any erroneous info on your report. I once had a bankruptcy listed on my credit report even though I was in high school at the time I supposedly filed for bankruptcy! Check your report because no one else is going to question things like this, instead they will proceed as though it is accurate information.
5. Improve your credit score.
Your credit score is important in determining how much you pay when getting a loan, but it can also play a factor in whether you are hired for a job, and how much of a credit limit you get on credit card accounts. While the CARD Act prevents issuers from raising your interest rate because your score has gone down, they can cut your maximum limit. Here are 5 Ways to Improve Your Credit Score.
6. Watch the mail.
The CARD Act requires that credit card companies notify you by mail at least 45 days before any changes in terms. If you miss the memo in the mail, you have little recourse after the terms are changed.
7. Watch your limit, and the offers to go over.
The CARD Act prevents credit card issuers from charging over limit fees unless you opt-in. If you don’t opt-in to be charged when you go over your limit, you won’t pay a fee but the transaction that would have put you over your limit will be denied.
8. Use your rewards points before you lose them.
The CARD Act does not affect rewards and reward points, but issuers may cut rewards or make them more difficult to redeem as a means of cutting their costs.
9. Ask for higher credit limits.
If you have good credit and don’t carry a balance, consider asking for more credit. Doing so will improve your credit score… provided you don’t spend more than you can pay. The CARD Act prevents issuers from raising the limit unless you can make the required minimum payments.
10. Consider services and alerts.
If you use your credit card company’s online services for checking and paying your bill, you may find they have free alerts for when your balance reaches a certain limit or that they offer a chance to get your credit score for free. It may be beneficial to make use of these services, provided there is no additional charge to you. 
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