Protect Yourself Against Credit Card Changes

AP

Your credit card company may be changing the rules, your rates, and even canceling your card with very little notice.

New regulations are supposed to protect you, but they don't go into effect until next year.

In the meantime, what you're doing could affect your credit score.

WATCH THOSE STATEMENTS

If you don't pay much attention to your credit card statements, you should because the credit card companies are paying close attention to you.

They know what and where you spend and if you're late on other credit cards.

It's their way of figuring out if you're good for the money you owe.

Banks are getting billions in bailout money, but they're also looking to generate more from you in the form of increased interest rate hikes on your credit cards and new fees.

Larry from Attleboro was 'Curious' "why the majority of my credit cards are increasing the interest rates even though I pay much more than the minimum or in full."

"It's happening at the worst possible time, but there's not much you can do about it," said Wealth Advisors managing director Cheryl Costa.

With people losing their jobs and money tight, Costa says the reason banks are doing this is because they can.

"They're trying to raise money any way they can," she explained. "They're getting money from the interest payments, and this is just another way for them to collect some payments to offset some the bad debt they are expecting to incur."

Credit card companies are also lowering credit limits, shutting down accounts where people aren't using their cards or canceling cards altogether.

DON'T OPEN MORE CREDIT CARDS

Basha Dziewanowski's card was canceled because her credit rating took a hit. Why? Because she applied for a couple of other credit cards to take advantage of a discount being offered.

Costa says that's a no-no

By opening up a bunch of credit cards, "You could be negatively impacting your credit score. Try not to do that," she said.

TIPS FROM THE EXPERTS:

• Pay off your balance if you can, if not be aggressive in paying off as much as you can.
• If you notice fees or new charges contact your bank and ask them to take those charges off. It never hurts to ask.
• Credit card companies don't want to get stuck with a customer's debt, so they raise interest rates on high balance cards as a way of motivating customers to pay off the balance.

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