Navigating credit card changes

Your credit card terms may be getting a makeover, for the worse. Thanks to the ailing economy, a tight credit market and banking woes, credit card issuers are increasing fees or slashing risk. Here's what you need to know.

1) Know the changes

First, interest rates on credit cards are trickling higher. In addition, fees on balance transfers are going up. Credit lines have been cut up to 50 percent in some cases. Reward cards carry more strings; card issuers have been increasingly closing out credit cards if you haven’t been using them frequently enough.

2) Be diligent

Don’t trash junk mail from your credit card company. It’s vital that you read everything because the company can change terms and conditions of your card at any time and without any reason. And you may get the chance to opt out of a rate or a fee increase. If you find out that your rate has increased, or your credit line was cut, the best thing you can do is complain.The replacement cost of a customer is about $200. You do have leverage.

3) Getting a card is tougher

Even getting a credit card is getting harder these days. And banks are giving out smaller lines of credit. The new customer is always the riskiest. So, if you want to get the best credit card deals, make sure you’re doing everything you can to improve your credit score. You want a card that has no annual fees and a low annual interest rate.

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