The mortgage crisis and other problems in the financial services sector are leading many credit card companies to change terms in an attempt to make up for lost revenue. Even cardholders with pristine credit reports and high credit scores need to pay attention. Consumers with less than stellar credit are especially vulnerable.<br />
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Credit card companies are raising interest rates. The average Annual Percentage Rate (APR) varies from month to month, and is around 12 to 14 percent with averages ranging from 11 percent for variable rate cards to 13 percent for cash back cards. Credit card holders that have been late with payments or over the credit limit could pay 32 percent or more.<br />
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Some credit card companies are lowering credit limits and closing unused accounts. If you carry a balance on your credit card and a credit card company lowers your credit limit or closes an account, your credit score will drop since you are using a greater portion of your available credit. A reduced credit limit may also make it easier for you to exceed your credit limit. If you go over your limit, you will pay an over-the-limit fee of $36 or more.<br />
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Late fees now average over $35, and more people are paying them. According to â
