Saturday, November 21, 2009

PersonalFinance: Card tricks for managing credit



Posted by Stefanie Marty

Written by Linda Stern

WASHINGTON (Reuters) - You're not the only one whose credit cards seem to be getting worse; it's happening to everybody. For those who find solace in that, the Federal Reserve Board has delivered it with a new survey of bank lending practices.

The Fed found the vast majority of banks increasing interest rates on credit cards, even on good-credit customers. Issuers are cutting borrowing limits for many customers and raising the credit scores they'll require before approving new card applications. They're adding annual fees to rewards cards and hiking the costs of cash advances and balance transfers. And those great zero percent deals? Dead, dead, dead.

Much of this is happening as bankers position their cards for the tougher new regulations that take effect next summer. By the time those rules kick in, cardholders will have had to swallow most of these new policies and practices. Who knows what will be left to regulate?

You don't have to wait until then to fight back. Here's how to take back control of your cards now.

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