It’s difficult to rent a car or buy a plane ticket without a major credit card like Visa (V), MasterCard (MA), or American Express (AXP).

We're living in a world where cash is no longer king. Credit cards offer convenience, but the flipside is often higher interest rates, new fees, and shorter payment deadlines.

New and seemingly ever-changing rules make it difficult to manage your account and maintain a solid credit rating. So, shop around for the best deal on a credit card. Wells Fargo (WFC) and Bank of America (BAC) offer convenience, but regional banks such as M&T Bank (MTB), PNC Financial (PNC), or KeyCorp (KEY) may offer better terms.

Some banks seem to be in a rush to stick it to customers as issuers prepare for reforms that take effect in February. The new regulations will limit when card issuers can boost rates on existing debt, lower credit limits, or impose new fees.

Here are 7 things you need to know to avoid getting bitten by your credit card:

1. Read the disclosure statement: This sounds totally obvious, but many cardholders don’t take the time to read the legalese in fine print. All terms and conditions are there in black and white. The challenge: slogging through legal verbiage as thick as molasses. The reward: keeping more of your money.

2. Use a calculator: Do the math before transferring your balance to a new card offering a low introductory rate. Some banks have raised the balance transfer fee, and this eliminates any savings. JPMorgan Chase (JPM) plans to increase its maximum balance transfer fee on selected cards from 3% to 5%. That may sound innocent enough, but it’s a 66.67% increase -- and it comes out of your pocket.


3. The simple solution: Pay your balance in full each month. This allows you to use the bank’s money interest free for a month and helps you build a solid credit rating. It also means that the bank will want your business and be likely to give you better rates in the future.

4. Don’t be bashful: If you’ve been a good customer and your bank slaps you with a higher interest rate, try to negotiate a better deal. The bank won’t want to lose you. If it doesn't lower your rate, shop around for a better deal at another bank. Then be sure to tell your original bank why you’re taking your business elsewhere.

5. Track your expenditures: Many banks tack on a hefty fee, some as high as $40, when you exceed your credit limit. Avoid this by saving your receipts and reviewing your statement each month. Beginning in February, banks will be required to inform customers when a purchase exceeds their credit limit, which should eliminate this fee for the vast majority of customers.

6. Stay in the bank’s good graces: Review the grace period -- how much time you’ve got to pay your bill before incurring a finance charge -- and get your bill in on time. Call the card issuer and change your bill's due date to match your pay cycle. For example, if you pay your rent or mortgage with your paycheck issued at the end of the month, consider paying your credit card bill with the paycheck you receive on the fifteenth. Spreading out major payments helps you avoid a financial crunch.

7. Keep a wary eye on the mailbox: Any changes to your credit agreement are likely to be sent to your home via snail mail. It’s easy to overlook such notices in the usual crush of junk mail. Open all mail from your bank, since it may include the only notice you’ll get of pending changes to your credit agreement. Telling your beloved bank “I didn’t know” probably won’t stop it from penalizing you for changes to your agreement you didn't bother to read.