The poll covered the last eight months which was during the throes of the recession. The questions that were asked concerned interest rate changes, credit limit reductions or increases, and incentives offered by companies to convince consumers to close accounts. The changes made on credit cards included 42 percent of the consumers polled. Another way to state it is that 42 percent of consumers had a change made to their credit cards by the issuing company.

The most common change that occurred was an increase in the interest rates. The new Credit CARD Act set to become effective on 22-February-2010 spurred credit card companies to increase rates. The legislation limits when the credit card companies are allowed to raise interest rates though it does not place limits on the interest rates charged.

The CreditCard.com polls reported that 38 percent of credit card holders had their interest rates increased over the last 8 years. The consumer advocate organizations have been monitoring the actions of credit card companies and are appalled at the increases in rates being put in place ahead of the new legislated rules. Some have tried to get Congress to stop the lenders from making radical changes in card terms but to no avail.

Other changes that consumers experienced related to their credit card accounts include conversion from fixed interest rates to variable rates and changes in the limit amounts. A surprising result of the poll was that 30 percent of the credit cards experienced an increase in credit limits.

Americans are using credit cards less often. According to the Federal Reserve, Americans cut their credit card debt by $91 billion in 2009. With the high unemployment rates, consumer counselors have been advising households to cut back on their use of credit cards. It is tempting when money is tight to use a credit card to make purchases, but the increase in debt often comes back to haunt the household.

The question now is whether reductions in credit card use will endure as the economy improves. As consumers return to work over the coming months, the analysts will be watching the numbers closely to see if there has been a permanent change in attitudes towards debt. Americans are being encouraged to save more and use credit cards less and many hope the new lessons stick.

Ironically though, if the changes in behavior are enduring, there is a question about the influence the changes will have on the economy. The less consumers spend, the slower the economy will recover. The CreditCard.com poll surveyed 1,004 households with a margin of error that was plus or minus 3 percentage points.

Credit card companies went into full attack mode as soon as the act was announced. Finding loopholes became an industry norm and interest rates soared to the highest levels seen in many years. Banks now charge a penalty annual percentage rate for a payment that is one day late and will continue to double cycle bill until it is prohibited on February 22.

What else can consumers expect?

Banks will now begin to place limits on inactive cards. Inactivity fees or a reduction in credit limits are two penalties consumers will see if cards sit inactive for a long period. Some banks will close inactive accounts.

Inactive accounts do not make money for banks. They do not have interest fees or other fees from which to garner funds. The bank does have to print and send the card and monthly billing statements which results in a profit loss to the credit card company.

Consumers can now expect banks to consider more than credit scores when issuing credit cards. It is no longer enough to keep a good credit rating to qualify for a high credit limit. Credit card companies look at environmental issues and other factors when issuing cards. For example, a person living in a low-income area with large numbers of unemployment will receive a lower credit limit than a person with the same credit rating living in a ‘better’ neighborhood.

Banks use very sophisticated technology to determine a person’s reliability. They do not want to be left holding the bag, especially after the recent down turns in the economy and the new limitations on credit cards.

Since banks will be banned from going after college students, they must find a new group of susceptible individuals to catch in their web. College students were the perfect target with their tendency to overspend and stay loyal to the first credit card company who gave them a charge card. Banks will now go after the parents of college students, convincing them to co-sign for their child’s credit card and offer such features as parental control monitors.

A surge in secured credit cards is expected. A secured card will be popular with consumers who have bad credit due to bankruptcies or other reasons. This type of card can help them rebuild their credit. Secured cards do have fees associated with loading money but these are usually not substantial and less than interest fees on standard credit cards.

One of the largest fears consumers face is debit card fees. The lack of any fees, when used conservatively, makes debit cards popular with consumers. However, some banks are putting fees on debit cards. The first debit cards to feel this charge will be ones with rewards programs. It will most likely come in the form of an annual fee.

The new credit card act, once thought to ease consumer fear, gives Americans new reasons to worry about credit cards. The smart consumer must stay on top of the economic and financial news and make smart decisions to protect their credit in 2010.

There has also been a lot of negative publicity aimed at credit card companies pre-empting the law by raising interest rates and fees. The reason for the high rate increases now is because the new law limits when and how the credit card companies can change customer interest rates and fees.

Through all of this it is easy to lose sight of the fact that consumers have a responsibility to manage their credit cards. The new law takes effect in February 2010 but customers can begin right now to manage their credit card debt. One thing that has confused many people is having their credit lines reduced even when they have an excellent payment history. This has just been one of the many consequences of the rule changes being absorbed by the credit card companies. So consumers need to understand that even in these types of situations, it is still incumbent on them to manage their debt responsibly.

Consumers can minimize the chances of having their interest rates increased or their credit limits decreased by lowering the balances on their accounts and making timely payments. And the wider the difference between credit limits and credit used, the better for the credit score.

If you want to avoid having a credit card cancelled, you need to use it periodically to keep the account active. Credit cards not used by customers have no value to the credit card business. You also have to watch out for inactivity fees that are currently being implemented in advance of the Credit Card Accountability, Responsibility and Disclosure Act.

When you get a credit card statement, it is important to read it carefully. The new law requires credit card companies to give customers and opt-out option for cards when rates are changed. Since many companies are making changes now in advance of the new CARD Act, it is important to keep a close eye on changes to your account. The types of changes that will be common include offers for over limit programs with expensive fees. The reality is the over limit programs are really not necessary if you manage your credit card usage in a responsible manner.

It is advisable for consumers to spend some time now to review their credit reports and scores. You should look at the open accounts on your credit report and decide if each account is necessary. When an account is closed, it will lower your ratio of available credit to used credit though. This is just one example of how manage a credit score.

The new Credit CARD Act is having some unintended consequences already as the credit card companies prepare to preserve their revenues and profits. Over the last ten years, consumers had become somewhat immune to credit card offers. Now it is time to actively manage the accounts, offers and terms.

They can function as a high-interest “loan” to yourself that you pay off over time. They can even be used to make investments, such as starting a business. Most people nowadays have at least one card and take advantage of these things; it’s practically a requirement for participating in today’s economy.

That said, however, there are just as many people who no longer see their credit card as a tool of freedom, but rather as an oppressive yoke cast about their necks that they’re forced to labor under against their will, regretting that they ever got involved with one in the first place.

If you’re starting to identify more with the second camp than with the first, what can you do to get back on track and find yourself in a place where your credit cards are working for you and not the other way around?

There are many ways to improperly use credit cards that can allow the situation to spiral out of control very quickly. One of the main things to keep in mind is just how many cards you have.

Having one credit card is an excellent idea; if you use it properly, it can confer all the advantages enumerated above, while also allowing you to bolster your credit by making on-time monthly payments. However, recent studies show that the majority of individuals currently have as many as five or six credit card accounts open at any one time.

How does this happen?

People will come up with an amazing number of ways to justify the matter to themselves, but whatever the excuse, this is hardly ever a good idea. Limiting your credit cards to one also limits the amount of trouble you can get into.

Late payments are another thing that you should definitely be keeping in mind as you use your credit cards. It can be very tempting sometimes to let a payment slide “just once”, especially if, like many people, you’re currently hurting for money thanks to the dwindling economy. If the choice comes down to buying medicine or paying your credit card bill, most people aren’t going to think twice.

But perhaps they should. In the long term, missing credit card payment can become an all too easy habit, because, generally speaking, credit card companies don’t really give you too hard a time about it… at first. Miss one payment, and you may only get a friendly reminder.

This is because they’re waiting for you to fall further and further behind, when they can begin to really rack up the profits on fees and interest, at which point you can be sure they’ll come after you.

Avoid situations like this with responsible credit card usage at all times. Remember – your cards exist to make your life easier, so why put yourself in a situation where they’re going to do just the opposite?

Even with the way the economy has been sluggish recently, having a credit card is an important tool in making financial choices from a day to day basis. They enable you to quickly get what you need by taking out a loan against the value limit of the card, developing a balance. This balance is what you reduce when you make your monthly payments. It’s ideal to cover what you owe in full, so that you not only cover your expenses and prevent debt from accruing, but also maximize the benefits of your credit card in regards to building credit.

Making your credit card count means doing more than just making your payments on time and in full, however. You want to obtain a card that meets your needs and gives you fair and respectable terms and conditions. If you already possess a card that isn’t optimal, you should reevaluate it and either establish new terms or find another one that meets your needs.

One of the first things you should consider with a card is the annual fees that may apply. Most people dislike annual fees simply because they frown upon the idea of paying a fee just to possess a card. However, annual fees often give you cost-saving benefits that apply to other aspects of the card, such as the possibility of lower interest rates that are fixed.

Something that matters to every credit card holder are the balance transfer features. This involves the rate of percentage that applies to purchases, and can go to one of two extremes. You can have either a card with a low balance transfer APR or one that comes with a higher APR that involves no transfer fees. Neither of these choices are better than the other, and are equally popular among cardholders. It’s simply a matter of choosing the terms that are right for you.

Another thing that shouldn’t be ignored are introductory offers. Card issuers like to present benefits and bonuses upon signing up that are very quite attractive. Several of the major card companies offer cards that come with 0% APR for roughly the first year or so. While these benefits may seem great at first, you should still consider what the card offers you after the sign-on bonuses expire. In many cases, you might end up with a card that is unfavorable to your situation and financial needs.

Having a credit card is one of the greatest tools you can possess this day and age. Just like any other tool, they come with the responsibility of having to be utilized wisely. More than that, however, you want to make certain that the tool you choose is appropriate for the task, which in this case is your personal finances.

Economic experts know, however, that they don’t always benefit the people who end up with them, but generally speaking, if a credit card is used right, it can indeed improve your credit score considerably. While the conditions of a card vary between card companies, you can reasonably expect a provider to operate by forwarding your spending and payment habits to credit bureaus so that your financial habits with a card are recorded on your credit.

That idea may seem scary to some people, but that’s the way credit cards work. With the right behavior and good habits, rather than recoil in apprehension at the thought of such things, you can instead relish the satisfaction of knowing that you’re doing a good job of keeping your financial reputation on the path of prosperity.

It takes hard work, diligence, and prudence, however. A credit card won’t improve your credit score overnight. Instead, what you need to do is make certain that you think in terms of the future, pay your balance on time and in full every month, keep conscious of your spending limits, and to monitor your transactions on a regular basis. These things sound simple and obvious, but a lot of people tend to get lazy or careless, and is it in the details where they find their mistakes.

Another thing that should be considered is the terms and conditions of your card. Scrutinize the policy that is presented to you, and determine that you’re getting a deal that is fair and advantageous to you and your needs. It can’t be stressed enough that in order for a card to benefit you, it should come equipped naturally with terms that work in your favor.

Making purchases with a credit card is something that doesn’t make buying items cheaper for you. In fact, it can be more expensive, because of the interest rates that apply to the amount that you owe on a card or the payments you make. Not only are cards capable of tricking you into thinking that you’re capable of handling more than what you can afford, they can also come with hidden fees and penalties for not managing your bills properly and on time.

Even then, they can also confound your efforts at making payments by tricky policies which come into effect just for having the card, such as annual payments for “service”, among other vague and subtle things.

Cards not only encourage you to spend what you don’t carry wherever you go, the companies themselves can back the advertising that assaults you. Card companies often send their consumers all sorts of flyers and deals in the mail that give those individuals rewards and privileges that depend on spending more. It is often these things that hamper their ability to save their money.

Having a credit card is a very challenging task, but one that comes with a potential for huge rewards. If you consider exactly what you have and how to manage it without inciting the wrath of your card company, you can gradually improve your credit score over a period of time, which is one of the best ways available to do so.

Considering the degree to which credit cards can put a person in debt, card companies can and sometimes often try to take advantage of you. However, that is exactly why obtaining a credit card is an issue that you should given strong consideration, in order to examine all your choices and arrive at one that best benefits both your financial situation and the way in which you live your life in regards to making purchases.

Credit cards are easy to come by, but a good one is golden. Determining one that is good for you, however, depends on your lifestyle and your spending habits, since there are cards with all sorts of features and limitations.

If you’re starting out without credit, for instance, there are student credit cards that are meant for college-aged consumers or just those without a financial history who are getting on their feet. These cards are a great way of getting the ball rolling financially, but they often come with very steep APR rates and sometimes some heavy surcharges that can penalize you greatly for missed payments.  You may also have to pay a high annual fee for just having the card as well.

What you want to do, generally speaking, is look at your options and decide on which one that finds your general lifestyle. You may be looking at a secured credit card, a balance transfer credit card, a rewards credit card, or just a standard one, but whatever you end up getting, you want to know how it can best fit your personal financial needs. Afterwards, you want to compare the companies that can provide the type of card you want, and review their offers. You’ll want to look into their policies and read them carefully, combing out the details that determine exactly how you’re expected to handle the card and what you have to pay in regards to keeping it and using it.

Once you have decided on a card of your choice and you’re working with the company that provides you it, you’ll want to have a copy of the policy at hand and finalize certain details about how the company does business. You’ll want to know how often the company reports your purchasing habits to credit bureaus, the degree to which they reveal policy changes and how they work to notify you of such changes. With this kind of information, you can decide on whether or not you want the card with the satisfaction of knowing exactly what you’re getting into and whether or not you can handle it.

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Sometimes, one issue can lead to another, and the whole idea of having a credit card can snowball into a number of problems that become quite severe and heavy, leading to a downward spiral of debt that leaves an individual wondering what he or she can do to handle the burden that the card has imposed on their lifestyle. This is a dilemma that may sound like just a bad accident, but the truth is that millions of Americans are dealing with this on a daily basis, and if recent reports indicate anything, then this number continues to grow as well.

The problem outlined can appear to be simply mismanagement, sloppiness, or just general careless on part of the people who seemingly choose to let these problems happen to themselves. The truth is, however, that there are plenty of credit card companies that have established a byzantine system of regulations and policies that inhibit individuals with credit cards to maintain steady payments in a simple and efficient manner. As crazy as it may sound, they also generally prefer delinquency, because it only means that they can work the policies they have in agreement with their respective cardholders to spike the interest rates and apply all sorts of devious fines that come from financial machinations.

The problem has actually grown out of hand in that regards, and the Federal government has stepped in to evaluate the situation and discuss imposing regulations on the credit industry to avoid the problems that so many United States citizens are suffering from every day. Rather than make it so that people aren’t held accountable for their own problems, the government is looking instead to make it harder for the credit card companies to be dishonest and not forthcoming about their plans and the ways they bend and twist them to squeeze money out of unsuspecting customers.

However, these sort of plans are always seemingly done with the best intentions, but what it comes down to basically is that to avoid the problems that occur in the first place with a credit card or anything else, one must take the proper precautions and have the right mind-frame when dealing with them.

In order to avoid credit card problems, you should first choose a card company rather than let a company choose you. The businesses are more than eager to get you to sign up by sending you pamphlets in the mail promising uncommonly low interest rates, prizes and free gifts, and even sometimes a credit card outright that you can activate later. These are just hooks that are looking to bait those who leap before they look. Take the time to evaluate your options and find one that is honest, direct, and suitable for your needs.

Another thing to know is that if you do get into a bind, you’re not obligated to keep a card. You can simply cancel it before it gets out of hand and then work at paying the amount that you owe afterwards. A credit card company can’t refuse this, and it works in your favor by preventing certain shark-like businesses from devouring your finances by applying fine after fine.

Basically, credit cards empower consumers with the ability of making purchases without having to possess the money at hand. Instead, they are trusted with the idea that they will pay back the company giving them this power at a later date with an additional fee that develops the trust between the two parties. This is essentially where the concept of giving someone “credit” comes from, and because of this, there are a number of factors that incorporate into how a company handles their cards and the policies they attach to their use.

Of course, credit card companies recognize very well how tricky a credit card can be to the unsuspecting or those who haven’t developed strong financial responsibility, and some of them have developed some tricky ways in which they take advantage of these unassuming individuals. Other companies are often just brutal, charging huge fines for missed payments, payments below the minimal acceptable threshold, or just not paying for the card’s features or the card itself.

With that said, it is important to know how to properly handle a credit card and to keep your usage of one guided by wisdom, prudence, and reservation. Many people end up falling into common traps when it comes to having a credit card, but you can avoid these by recognizing what they are and why you should avoid them.

For starters, one thing you should avoid is using your credit card to make everyday purchases. Although they don’t seem like much in themselves, items such as food, gas, commodities, and related paraphernalia can quickly add up without you noticing, putting you quickly in debt. Instead, you should use cash or a debit card for these purchases, thereby allowing you to realize how much you’re spending and to keep it within what you actually possess financially.

One thing you should do is make your monthly payments on full and on time. You never want to reduce yourself to paying only the minimal required by your company, because that only prolongs the time that will be required to pay your debt off in full. Instead of simply dealing with a consistent problem, you can prevent it entirely by keeping check on what you use your card for and then limiting that use to what you can afford.

Of course, this all leads to one of the most simple but profound rules that govern credit cards, and one that you know already but should always keep in mind nonetheless. Don’t buy what you can’t afford. It’s quite easy to get anything within the limitations of your card, but if you can’t pay for it with the money that you make, then you shouldn’t purchase it at all. Simply put, living a lifestyle that you borrow from others puts you in debt to those people that you have borrowed from. The same applies to institutions, and you can’t talk yourself out of debt with those.