With the approaching February date for credit card regulations to go into effect, many credit card companies are taking steps now to reduce their risk of consumer defaults.  You may already have experienced this: accounts closed for no activity, credit limits reduced even though you always paid your bill on time, interest rate hikes on accounts that you've had for years. 

As financial institutions look at their customers to decide which accounts are getting trimmed or eliminated, they may be checking out the types of purchases you make with your credit card.

Oh yeah.  We've heard bits and pieces on this topic and the credit card companies usually deny it.  However, nationally recognized sources are now warning consumers to be careful about the items they are charging.  Marketplace, from American Public Media, recently compiled a list in conjunction with Dr. Robert Manning of Credit Card Nation. 

This list of 10 Purchases NOT to Put on Credit Cards includes some you might have already thought of such as alcohol and bar tabs, lottery tickets, and adult video and toy store items.   However, items such as traffic tickets and marriage counseling can be an indicator of recklessness and instability.

Some surprises on the list are bargain stores: if you haven't been a regular shopper at discount stores in the past, it could be interpreted as a sign you are worried about your finances or your job.  Retreading your tires, especially if you've always been a new tire shopper for replacements, can also be a red flag to the credit card company.

Yes, these are unusual and somewhat bizarre times.  Privacy isn't what it used to be or, perhaps, what it should be.  Keep your credit card balances paid down under 30% of the credit limit as soon as you can get them there.  Remember, it is okay to have zero balance on your account.  Just don't close them when they are paid off.  Keep accounts that are paid off active by using them every 3-4 months for a small purchase of something you were going to buy anyway, such as a tank of gas or new socks.  Then pay the bill in full as soon as it arrives next month.

Following these tips, and avoiding the purchases listed above, are a great way to build your credit and get better scores.