Finances Matter When Buying a Home

Okay...you had a "duh...no kidding" response to the title.  I'm not surprised!!


Yet I find many people unaware that a simple thing as credit card fees can wreck havoc on their finances.  Along with the recent legislation designed to protect consumer from credit card fees and tactics, individuals believe all is well and that any credit card servicing company can't impact their finances any longer.


Please read the following article from Rismedia.  The discussion of current credit card tactics, fee avoidance and other tactics will help keep your finances in order.


You don't want your plans to buy a new home sidetracked when mortgages rates are so low, do you?


Pass on to your friends!


RISMEDIA, December 20, 2010—The credit card fee changes of a few several months ago are designed, like previous changes, to protect consumers by adding clarity and transparency to interactions between card issuers and holders.

However, as these new rules take away revenue opportunities for card companies, issuers are raising other fees or creating new ones to compensate. Money resource Bills.com cautions consumers to be aware of the new rules and also learn how to avoid new fees.

In order to avoid these fees, personal money resource Bills.com shares the following strategies consumers can employ to better avoid additional charges that have arisen because of changes outlined in the Credit CARD Act.

1. Monitor your communications from your credit card issuer. One of the best ways to stay abreast of changes specific to your cards or situation is to closely monitor information sent from your issuer. New regulations require much greater disclosure on all changes, so any update will be sent to your attention. Be alert for all mailings and read them carefully before throwing away or destroying.

2. Maintain prompt payment status with your credit card company.Despite all these changes, the simplest way to avoid fees is to pay your credit card bills on time. By missing or being late on a payment you will incur fees, potentially increase your interest rate and lower your overall credit score.

3. Pay down high balances to improve credit card utilization. This will show that you can responsibly manage your credit limit, minimizing the chance of higher tiers of interest rates or reductions in credit limit. Additionally, better credit utilization will help boost your credit score.

4. Maintain activity on your credit card accounts. By using the revolving credit lines that you need or want to keep and promptly paying on them, you can help avoid cancellation of those credit card accounts. This will also help avoid faux inactivity fees and help boost your credit score, while having a long existing credit line closed could lower your score.

5. Avoid over-limit fees through responsible spending habits. Credit card issuers have begun to charge fees for opt-in over-limit coverage. By remaining aware of credit limits and balances, consumers can avoid a need for this service and these fees altogether.

6. New regulations do not apply to corporate or small business cards. This means some small business owners might consider using personal cards for business expenses because of fee and rate limitations. However, these owners should remain cautious because their personal credit scores could suffer in the event of missed payments or defaults. Conversely, be aware of companies that are increasing solicitations for corporate card members to avoid new regulations.

For more information, visit www.bills.com.