As many people have decided to only use one or two credit cards, one of the main questions asked is, "Should I cancel the cards that go unused?" While the answer is different for everyone, knowing whether or not to cancel a card should not be a difficult choice once you know how the account closure will affect for credit scores.

So what is affected most when it comes to an account closure and your credit score? For the most part canceling your card alters your utilization ratio (balance-to-limit ratio). When this happens it looks as though your borrowing much more when it comes to your credit limit, which could affect your score more than any other changes. In addition to your balance-to-limit ratio, if you are closing your longest standing account your payment history would essentially be shortened. While this may not effect your as much as the utilization ratio your score has a very high likely of falling a few points.

If you do decide to cancel any accounts, there are a couple of things that could help ensure that your credit score doesn’t take as hard of a hit. They include:
 

• Spreading out closures over time
• Keeping your oldest account open
• Keeping the cards with highest credit limits
   

When it comes to keeping cards that are going unused one of the major concerns that cardholders could see in the future is a fee for not using the card. While there is currently only one major issuer utilizing the fee at the moment, an inactivity fee for not using cards within a specific time frame is something to think about. Discussed a little more in a previous post entitled, "Credit Card Inactivity Fee…..Lost But Not Forgotten", many experts see the possibility of this fee being used by other issuers relatively soon.

Have you ever thought that by using a credit card to finance a purchase, you could ultimately save money in the long run? If not, don’t worry because there are millions of Americans thinking just like you when it comes to using plastic to pay for goods. That thought being that at the moment credit cards are completely off the table due to the recent actions by credit card issuers.

Even with major changes to many accounts there seems to be ways for cardholders to save money in the long run by using their plastic, but the question remains how. In an article on Bankrate.com entitled, "Credit Card May Beat Home Equity Loan" the writer Don Tyler lets you know by answering a question from one of his readers about financing a home project. Not only does he give you a good example on how a credit card (with a low interest rate) compares to the option of taking out a home equity loan, he also gives you an example on how additional criteria such as fees and the life of a loan play a major part.

While this article may not be for everyone, it makes a great point that could help you save money on any purchase. Before choosing any option when it comes to making a purchase, it is best to lay out all the options you have including using plastic. While in many cases credit cards may not be the best option, sometimes it could very well be the cheapest.

Have your received any mailings lately that detailed how the new law that takes affect February 22nd effects your credit card account? Odds are you probably have or if you haven’t then you probably will very soon, as these mailings will contain valuable information on how issuers will conduct business moving forward.

According to an article on Bankrate.com entitled "Watch for CARD Act Mail", with regulations approaching soon, your mailing could be the only thing to let you know where your issuer stands. This is because the new regulations were designed to set a standard with financial institutions when it comes to their plastic. Even as a standard is set some may find that while many issuers may just decide to comply with the minimum changes others may be going above and beyond that of what is required by the White House. For this reason the mail that you receive could be quite different than those received by others.

Just like other information that is sent from your issuer, this notice is vital and if you neglect to read or understand them you could be making a very terrible mistake. As the new law takes effect soon I would love to hear from you. Let me know what changes you have received concerning the CARD Act and your account.

Have you joined the "Back to Cash" group and decided to use your plastic less often? If so, you part of a growing movement that millions of Americans have decided to take part. However even as the back to cash movement grows, financial institutions are still finding that when it comes to some purchases credit cards are still leading as the payment of choice. While most of the time it is simply the item that has people using their card, other times it is what is received by the cardholder that prompts the use of plastic.

As far as the purchases that get paid for with credit cards, they normally include big ticket purchases (ie: TV’s, computers, appliances, etc.), travel, gas and vehicle expenses, as well as certain bills and emergencies. This is mainly because when credit cards are used the consumers are given additional benefits and protection that would be lacking when paid for any other way.

When it comes to what is received by the consumer, the thing that leads the way is mainly rewards. Rewards such as those tied to gas cards, business expenses and entertainment. For a while now reward credit cards have been the most popular among Americans, due to the fact that the cardholder has more of an incentive to use the card.

With 2009 behind us it is now time to start the 2010 off right. For millions of Americans there is no better way then making sure that both themselves and their money is the safest possible. Even though we really don’t want to think about it, credit card fraud will happen in 2010. While it will happen, it doesn’t mean that you have to be a part of it.

While we do have to depend on other companies to protect our information as best they can, consumers can do more than they think to help. An article entitled "8 Ways to Increase Online Credit Card Security" you learn exactly what to do when it comes to protecting yourself and your money when shopping with a credit card online. While every tip in important the most notable include:
 

• Using only reputable websites
• Keeping personal information…..personal
• Having the most up-to-date antivirus and personal firewall software
• Looking out for spyware
• Monitoring your credit card statements and bills
• Reviewing your credit report regularly

While these tips may seem simply enough, every year millions of people fall victim to credit card fraud by neglecting simple ways to protect themselves. As new technology is created to not only allow you to pay for products and services but allows sellers to accept payments anywhere, it is more essential now than ever to be more careful.

With the New Year ringing in soon, one can only expect that the resolution taken on by countless numbers of Americans in 2010 will be to either strengthen up their finances or become debt-free. For many, strengthening up their finances or becoming debt-free hinges on one product that people have grown to hate more in 2009; credit cards. While simply getting rid of their credit card is probably the best answer for some, others will need to make better choices when it comes to using them.

For those that are keeping their plastic, and want to make sure the dramatic changes don’t happen in 2010 like those in 2009, an article entitled "Top Four Tips for Credit Cardholder in 2010" can help you achieve just that. Tips in this article which are detailed include:

• Knowing your credit score
• Strengthening your credit limits
• Watching your credit utilization ratio
• Monitoring your credit report
   

Although you can’t control many of the changes that happen to your terms, you can put yourself in the best possible position to where the changes don’t affect your situation as much. While you will have some help from the CARD Act, that will help regulate the credit card lending industry, you still will need to do most of the work. Even as the new regulations are scheduled to take effect early in the year to help cardholders, we all know that just relying on the new laws will not be enough.

When it comes to your credit card online management account do you know what all is available to you? If you are like a majority of American cardholders than the answer may be no, and this does not have to be.

For many Americans the most commonly used feature used is the view of online statements and bill pay. However there is so much more that is at your fingertips and many could make your financial life much easier in the long run. While your issuer may not offer these exactly, the most noteworthy services include:
 

• Tax Advice and Education
• Retirement Planning and Education
• Ability to Integrate other Financial Accounts
• Sort Feature (Date, Size, and Category)
• Tools / Calculators to Help Pay Balances
• Access to both Credit Profile and Report Information
   

In today’s economic environment, as many people are looking to pay off credit card debt these features can help you along the way. When it comes to using these services it is easier than you think, and for the most part your information is already in the account so you won’t have to guess what you need to do to make your dream of paying off your credit card a reality.

Throughout the years the evolution of store credit cards has been tremendous. While some have used these cards to help build their credit, others have simply applied for the card for a discount. For that very fact many people have found themselves applying for countless number of cards, untimely doing more damage to their credit rating than good.

In an article entitled "Credit Card Basics: 5 Things You Need to Know about Store Credit Cards", we learn more about the world of store credit cards beyond the discount on your current or next purchase. Within this article points that are touched on include:
 

• Type of Credit Inquiry Involved
• Effects on Your Credit Score
• Growing Difficulties to Getting Approved
• Savings May Not be Savings
• Those Who Benefit From Using These Cards
   

After reading this article you will get little bit better understanding on those who actually benefit more than others for applying for these types of plastic. As with any credit card always read and make sure you know what you are getting into before you sign your name. While getting a discount might seem like the best thing for now, it could eventually cost you more then you want to pay in the future.

When it comes to the word "free", there is something that seems to entice just about everyone. Unfortunately, most things labeled as free aren’t actually that, and for millions of Americans, when it come to free they end of paying more than every thought. This is thanks to a process that is termed as "negative option" where your credit card is routinely charged for products or services you weren’t aware of purchasing.

When it comes to getting consumers to sign up for these features and services they are generally seen accompanying pre-checked consent boxes or they are buried within the offers terms and conditions that many people neglect to read. While products and services that have been widely associated with this practice have varied, many today include offers for dietary weight loss supplements (ie: acai berry supplements), teeth whiteners, information about government grants, detox products (ie: colon cleanser) and debt consolidation services.

As the campaign to fight negative options continues, it looks like the list of those who are fighting against this practice continues to grow. Very recently Visa ended it business with many merchants who used to practice on unsuspected consumers. The Better Business Bureau has let it be known that if you think you are a victim you need to take action immediately. A BBB representative has stated that first you need to dispute it with the merchant and if this is unsuccessful then you need to call your credit card issuer and file a complaint with the FTC.

No matter what your credit score is I am pretty sure that you have probably gotten a call or mailing from a debt management company asking if you would like to use their services. While for some this wouldn’t even be a consideration, for others this could feel like the only lifeline that is available to them. For those that plan on using this service, watchdog groups and the Better Business Bureau say "beware of scams".

Debt management scams involving credit cards is something that has been around for a while. The only difference now is that there are millions of more people that are deeper in debt than ever before and are now thinking about using these services. Within the past months as employment had fallen, many people have decided to make payment on their credit cards the last thing on their "financial to do list". By doing so, compounding interest has made paying off credit card debt very difficult if not impossible.

Even with the growing use of debt management companies, there are some credit card issuers that prefer to deal directly with you, while others don’t mind working through someone else. So what does that mean? Well, it means that while there are some bad there are good. Before deciding to work with any company involving your finances (or anything for that matter) make sure you know as much information about them. For a list of those issuers that are willing to work with debt settlement companies check out "Some Issuers Growing Comfortable with Settlement Companies".