Q: With the credit card changes, I'm afraid I'll have to start paying fees. Other than checking out interest on different bank cards, etc., what can I do to specifically keep my rates in check? -- Worried Wally
A: Dear Wally: You're a pretty smart customer to explore ways to keep your purchasing habits and, hence, credit card fees from spiraling out of control. While the recently passed Credit Card Bill of Rights incorporates some great changes for consumers, it doesn't offer as much protection for those of us who pay on time and even pay charges off monthly.
Regardless, each of us who use (or abuse) plastic should follow expert advice from Liz Pulliam Weston, nationally recognized financial columnist and author.
* Don't always make the minimum payment. Some consumers figure -- mistakenly these days -- doing so proves we're good for the monthly payment. While this used to be the case, these days the banks often assume a consistent bare minimum indicates a person who's on the verge of default.
* If a consumer maxes out any credit card, double jeopardy attacks. Again, these times they are a'changin'. Today's economics ensure that if you owe the max on,
say, your Sears charge card, your Visa's rate may climb. Nope, this isn't fair, but bankers still try to line their pockets as much as possible.
* No late payments, please. Whether that Belk's card or an American Express, late payments on any type of loan opens a consumer up to financial punishment. Banks see habitual tardiness as a red flag and will assume you're in over your head.
* Keep all loans to the most minuscule number. If you apply for additional credit cards or loans, companies may decide you've got too much available credit and that big-toothed shark just might take another humongous bite out of your financial hiney.
Ellen Phillips is a retired English teacher who has written two consumer-oriented books. Her Consumer Watch column appears on Saturdays in the Business section of the paper. An expanded version is at www.timesfreepress.com under Local Business. E-mail her at consumerwatch@timesfreepress.com
Ellen Phillips is a retired English teacher who has written two consumer-oriented books. Her Consumer Watch column appears on Saturdays in the Business section of the paper. An expanded version is at www.timesfreepress.com under Local Business.
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