New regulations from the Credit CARD (Card Accountability, Responsibility, and Disclosure) Act took effect on February 22, 2010. This act seeks to eliminate unfair practices and make the entire credit fee practice more transparent.

Here are 5 sensible tips to manage your credit card:

1. Maintain prompt payment status with your credit card company.   Demonstrating that you can responsibly meet your current credit obligations is the number one behavior that will impact your standing with the credit card company and your credit score.
2. 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.
3. Maintain activity on your credit card account. 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.  Additionally, some credit card companies are introducing inactivity fees.
4. Avoid fees through responsible spending habits. Credit card providers will likely look to recoup revenue by charging fees for extra services.
5. 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 of defaults.

Manage and protect your credit to increase your purchasing power when buying a new home in Cardiff, Encinitas, Carlsbad, or Vista.

The National Association of Realtors reports that the Pending Home Sales Index has increased for five consecutive months. This indicates that home sales are picking up, and prices may have hit bottom. This is due to low interest rates, lower home prices, and the large selection on the market, not to mention the $8000 tax credit available for first time buyers (but remember, the sale must close by November 30 to be eligible).

In addition, the Housing Affordability Index is also improved. The average family would devote 15.7% of gross income to payments of mortgage principal and interest, which is well within the upper limit guideline of 25%.

It is expected that home sales rates will gradually rise over the rest of the year as the recession recedes and prices bottom out. The large inventory of unsold homes should decrease, putting upward pressure on prices and decreasing available choice.

The bottom line: this may be the best time for people wanting a home  in the North San Diego County communities of Encinitas, Cardiff, Carlsbad, Oceanside, or San Marcos, to start shopping. As the market reaches its bottom, prices are likely to rise, so don’t delay.