Getting Out of Debt Fast

Credit Card Changes During 2009

Read the fine print on your credit card accounts. You might notice that interest rates have increased or a monthly fee has been added. Credit card companies across the country are making changes to their terms and many of the changes are not good for the consumer.

Credit Card Changes #1 - Interest Rates:
Credit card interest rates have generally increased for all major card issuers and some have even doubled or tripled for consumers who pay their bills on time. Card issuers have increased the interest rate by a minimum of 1% and some have gone even higher.

Credit Card Changes #2 - Fees:
Credit card issuers make billions of dollars every year through penalty fee income. Fees include items like balance transfers, cash advances, and also charging individuals who have large balances but little account activity.

Credit Card Changes #3 - Credit Limits:
Many credit card issuers are lowering credit limits. This is an area to really watch because some issuers have cut limits to amounts lower than the balances owed which triggers over-the-limit fees on some accounts. Also, lowering credit limits can immediately lower your overall credit score if you carry a balance on that account. Always try and keep your balance at thirty percent or lower of your available credit limit to maintain a good credit score.

Credit Card Changes #4 - Rewards:
If you have a credit card that issues rewards you might notice that the rewards have been cut or lowered. Rewards such as Citi's Thank You Rewards and AmEx's Delta Sky Miles have been cut. Some introductory rebates and gas rebates have been lowered by participating card issuers.

Check your monthly statement carefully to see what if any changes have been made to the terms of your credit card. You can still use your credit card but make every effort to pay off the balance at the end of the month or make every payment on time to avoid unnecessary charges.