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In the wake of continued criticism taking place in the credit card industry, a new law called the CARD Act will enforce new regulations affecting credit card companies and cardholders.

There will be firm restrictions placed on credit card companies regarding rate hikes and fees. Cardholders will also notice increased disclosure requirements made mandatory by this new law. Borrowers too must take time to familiarize themselves with these new provisions and how it affects them as well.

Although new rules deter retroactive rake hikes in no way removes the possibilities of cardholders even with high credit scores to avoid all fees involved.

Another stipulation that cannot be ignored is the right of credit card companies to decrease your credit limit due to credit scores dropping, card usage being low or payment behavioral changes.

Sad to say, it no longer matters if you’ve been a good customer in the past. Your account could be closed at any time. And let’s not forget the shocking statistics showing how more and more mortgage delinquencies are directly related to credit card delinquencies and how this is all related to personal (non-mortgage) debt.

So, just because the St. Louis market has not been hit as hard as other real estate markets “and won’t suffer the run down” says Jack Strauss, a St. Louis University economist, St. Louis home mortgage consumers need to be aware of 3 credit card moves that will put them in a better financial situation in 2010 as regards their high interest debts and mortgage.

1. Credit card holders need to hanker down during this financial windstorm by paying their bills on time, lowering their balances and not closing accounts unless it helps in avoiding fees or changes in terms. This will help your credit score.

You may consider paying down holiday purchases which reduces your outstanding balance protecting you against negative changes to your account. This will inevitably save you money and most likely improve your credit score.

Although it is a step in the right direction, until the Credit Card Accountability, Responsibility and Disclosure Act takes place, a cardholder may find themselves susceptible to higher interest rates due to an existing balance. By paying off or lowering those balances now may prove effective in keeping your current credit limit(s).

2. Now would be the time to discuss your financial options including a possible refinancing with your local St. Louis mortgage broker.

If you have been contemplating a refinancing, this could now help you in paying off high interest debts which not only saves you money but will assist you in lowering your balances to avoid loss of credit limits or being hit with a lower score.

A professional St. Louis loan officer can work with you to discuss ways to improve your debt-to-income ratio and how this may prove invaluable in helping you perhaps raise your credit score.

The problem that may surface is if your credit limits are cut and your debt doesn’t decrease or get paid down, your score may drop at any given time. This may be avoided by disciplined budgeting or with the help of a St. Louis refinancing loan. A professional in this area will be able to help you form an aggressive financial attack or banking offensive as I like to call it.

3. Be absolutely sure you open all mail before discarding it and read all credit card disclosures carefully.

The credit card companies are required by law to give you the right to opt out of your card if there are changes in terms.

If after reviewing any changes in the terms of your credit card, you must either accept or reject the new agreement. If you decide to opt out this in fact cancels your account and any balances owed must be repaid.

But to leave you on a positive note, there is much you can do to vastly improve your credit score so as to not face these financial dilemmas. By making a fervent effort to keep your credit card scores high, this should qualify you for most types of credit cards that have lower rates and worthwhile perks.

Some other areas to stay away from is applying for multiple credits in a short period of time. This will produce several inquiries on your credit report which will in turn lower your score. And, oh yes, always when possible pay your bills on time.

We could go on and on on this subject but try to remember to pay close attention to the 3 important tips already discussed. They will help steer you through this economic storm and put you and your family in a better financial position.

Learn more about St Louis home loans. Stop by Floyd Tapia’s site where you can find out all about a St Louis home mortgage and what it can do for you or call 314-698-4092.