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While the new credit card law offers some shield against sudden interest rate changes, it does not provide complete protection for credit cardholders. To maintain a good credit standing, cardholders need to know the right strategies and stick by the rules. Listed below are 8 credit card tips for you:



Pay down your charges. Remember that 30% of your FICO score is based upon your credit utilization so the lower your credit-to-debt ratio is, the higher your credit score would be. Experts recommend not exceeding 30% of your allotted credit.

Check your credit card mail. You can only benefit from the provision of the new Credit CARD law if you pay close attention to notices sent by your issuer. It’s important to understand that your issuer can still increase your current rate as long as you are given an advanced 45 days of notice. And there is still no cap to the increases.

Hence, cardholders are given the option to “OPT OUT” or cancel the card when the new rate applies. Nonetheless, you will still be required to pay your remaining balances in your account under the old terms you initially signed up for.

Check your credit report and score. Exercise your right to dispute errors or unauthorized charges in your credit report which could be pulling down your score. To make sure that your report is free from errors, order a copy from each of three major bureaus at least twice a year. Take note that you are eligible to receive one free copy of your report from each of three bureaus by visiting AnnualCreditReport.com.

[Article: How to Get Your Free Credit Report]

Ask for a higher credit limit. A higher credit line protects you from over-using or exceeding your limit so it’s smart to choose a credit card with a reasonable limit. If you have an excellent credit standing, call your issuer and request if they can raise your present limit or lower your rate.

Don’t let your account go idle. If you choose to keep a credit card, be sure to regularly use it on smaller purchases and pay down your full balance right away. Most issuers will charge inactivity fees on a dormant account, plus annual fees to keep it active.

Use your rewards points. Do you own a reward credit card? If yes, be sure to read mails from your issuer or review the terms & conditions online. Some issuers have made some changes on their reward programs, imposing blackout dates and restrictions.

Use your credit card perks. Make the most out of your credit card by knowing its features and the privileges you can get as cardholder. Some credit cards offer free car rental insurance, purchase protection, extended warranty, etc. By understanding each perk, you’ll know how to use them at the right time to save money.