Spring Cleaning for Credit Cards

Written by Beverly Blair Harzog
Posted On: April 8, 2010

It's that time of year when we think about ridding our homes of clutter and making everything look shiny and new again. How about applying that same concept to your credit cards? No, you don't need to polish your cards, but "cleaning up" the way you deal with your credit card paperwork is always a good idea.

Read your credit card and disclosure statements and check for the following:

• Added fees, such as annual or inactivity fees--With the new credit card legislation, new fees are likely to pop up.
• Increased APRs--A lot of increases happened before the credit card legislation went into effect on February 22. The CARD Act does offer some protection against significant changes, but read your statements to make sure your issuer is following the rules.
• Increased fees for things such as balance transfers, cash advances, late fees, and foreign exchange fees
• Less attractive rewards programs--These changes could be subtle. For instance, the amount of cash earned on purchases might decrease by .25 percent. Or maybe you now have a slightly higher purchase requirement before your bonus miles kick in. Some of the changes might seem tiny, but over time, they can add up.

Another spring cleaning ritual is storing away those winter clothes. Okay, you're not storing away your cards for the spring, but you do need to store your receipts and statements.

Here are some ways to organize your credit card clutter:

• Start a mail ritual. When the statements come in, read them as soon as possible. Verify the charges against your receipts. Make it a habit! If anything looks amiss, contact your card issuer right away.
• Once you've read your statements, file them. You don't need an expensive cabinet. You can use a simple manila folder, an accordion file (works well for receipts), or a small plastic filing box. Even a shoe box will do. The most important thing is that it's convenient and easy for you to maintain.
• If you decide to throw away the monthly statements and receipts after you've matched them, use a shredder to protect yourself from identity theft.