This topic has already attracted plenty of comments. The Federal Reserve normally gets about 1,000 comments on issues such as this one. At the time of this writing, the credit industry overhaul topic already had 9,300 comments. It seems like everyone has something to say about the credit reform bills. Consumer advocates praise the reform, while the credit card industry says that stricter laws will result in less competition – and higher prices for card holders.

The Fed expects to make a final ruling on these proposed laws by the end of the year. You can comment on the credit card reform bills until August 4th. Other bills concerning credit disclosures can receive comments until July 18th.

To express your opinion about the proposed changes, go to www.federalreserve.gov. Click on “Consumer Information”, then on “Proposed Rules for Credit Cards and Overdraft Services”. Scroll down until you see “Regulation AA”, and click on “Submit Comment”. Just remember that any comment you leave will be visible to the public.

How can you keep from getting hit with the credit reduction whammy? First, always make timely payments - on everything. Credit card companies might penalize you with a reduced limit if you make even one late payment that causes a dip in your credit score. Also, keep a good debt-to-credit ratio on your existing accounts. If you go over your credit limit, you just might find that it gets smaller as your bills get larger.

Some people face falling credit limits through no fault of their own. Companies balk at extending high credit limits to customers who work in troubled industries, such as real estate or mortgage loan processing. And with upcoming legislation that will regulate the way credit card lenders can make changes to credit limits, some companies are hurrying to make changes now.

Protect yourself by being a good customer, making timely payments, watching your credit limit, and always reading the fine print when you sign up for any credit card.

Citi is marketing the new service to mobile phone users with busy lives. They encourage customers to call or text merchants through Citi Mobile when they need to send deliveries, pay bills, or load up on units for prepaid phones and Internet services. The purchases are then charged to the customer’s credit card.

This mobile banking system was launched in the Philippines because of the high volume of text messages Filipinos send each day. Some have called the Philippines the “Text Capital of the World”, and for good reason: Filipinos sent approximately 1.5 trillion text messages last year alone.

But markets all over the world will be watching to see how warmly Citi Mobile is received. If all goes well, you can bet Citi’s global offices will jump on the bandwagon and offer the service in other areas.

More than 4 million households have turned to a short term, higher interest product, like a credit card, in order to make a payment on a lower interest, long term mortgage!

If you were one of the 4 million who did this to keep your head above water, you should definitely take careful stock in how you are spending your money.  You would probably be shocked at how much money you have available to you, if you cut back in certain, non-necessity areas.  Go through your check register and credit card statements to see exactly where your money is going, and anything you’ve spent that wasn’t an absolute “MUST” should be considered carefully.  You may be able to pay off credit cards and keep up with your mortgage if you  make some slight changes in how you spend your money.

Most people hurt their credit scores by utilizing too much of their available funds.  For example, if all of your credit cards combined have an available spending limit of $8,000 and you usually have about $6,500 in credit card debt each month, you’re using a large percentage of your available money and therefore your credit score is negatively affected by that.

One way to start raising your credit score using your existing credit cards, is to ask your credit card companies to raise your credit limit (without checking your credit report).  If you’ve been making your payments on time, chances are the credit card company will do this for you.  As you increase the amount of money you have available, and continue to pay down the amount of money you owe, you’ll see your credit score go up.  Just be sure not to start charging more because you have more room on your card(s) to charge!

Many credit card companies have relationships with car makers, which means it’s only natural that credit card rewards programs would exist to help with the purchase of a car.  Basically, as you use the credit cards with auto rewards, you earn points or rebates that build up in your account.  When you are ready to purchase your car (even if you are going to be financing the vehicle rather than purchasing it outright), you can call the credit card company and have the rebates you’ve earned applied as the down payment on the car.

This trend has also caused many banks and card companies to lower their customers’ credit card limits. The unfortunate trickle-down effect is lower credit scores for card holders.

Credit scores are affected by a person’s debt ratio, which is the amount of debt they carry compared to their available credit. When credit limits go down, debt ratio goes up - and credit scores suffer as a result. Card holders might cease to qualify for loans, or they might be required to pay higher interest rates.

Always stay updated on your card’s terms and conditions, and watch carefully for changes to your credit limit. A credit monitoring program is also a good way to be alerted to sudden changes in your credit score. Equifax is one company that offers low-cost credit monitoring services. A web search for “credit monitoring” will turn up plenty of options as well. A little research and a little vigilance will prevent any unpleasant surprises on your credit report.

CompuCredit also factors what people buy with their credit cards to determine whether or not to extend credit to people.  Customers who use their credit cards to pay for marriage counselors are denied credit; as are individuals who pay for massage parlors,  billiard halls, or their bar tabs on credit.

It seems credit companies can do whatever they want.  At least the FTC is taking action with a lawsuit against this company for it’s strange approval processes, but I can’t help but wonder how much of this type of “stuff” is factored into our actual credit scores?  If it’s possible for a credit card company to use this information to deny or approve credit, it is probably just as possible for a credit report agency to use such information in the calculation of our credit score or history?

Skimming occurs when someone runs a credit card through a hand-held device that stores the account number, expiration date, and other information. Waiters and retail cashiers have been known to employ this method, quickly swiping a customer’s card when no one is looking. The devices themselves are so small that they can be used subtly. Other skimmers have implanted such devices in gas pump card readers, returning to collect the harvested information at a later time. It’s a fast-growing type of credit card fraud, and no one is immune.

To protect yourself, pay in cash if you feel uneasy about handing your card over to a waiter. Keep an eye on your card at all times. And always monitor your credit card statements and credit score for unauthorized activity. Thieves thrive when their victims do nothing; contact your card company immediately if you see anything suspicious.

Gas sellers typically mark up the price of gas by eleven or twelve cents per gallon. Rising interchange fees take away about ten cents per gallon. But stores that stop taking credit cards risk losing their business altogether.

These interchange fees affect other retailers as well, but many small convenience store operations are being hit hard. For example, Mr. Ed’s Chevron in St. Albans, WV, makes about sixty dollars in profit from its monthly gas sales. But after paying out a whopping $500 a month in interchange fees, the manager there has decided that it’s just not worth it to take credit cards.

“It kind of runs hot and cold, but I do know some stations have decided enough’s enough, and it’s cash only,” said Ed Stephens, VP of Englefield Oil Co., whose Duke and Duchess Shoppes are scattered throughout Ohio and West Virginia.

It looks like tough times ahead for gas station owners.