In July of 2010, new government credit card regulations will be implemented to relieve the squeeze on consumers.  Credit card lenders will no longer be allowed to raise credit card rates without a justified reason, and will also be required to fully disclose changes to credit card holders in a timely manner in terms that can be easily understand.

But, until these federal regulations are implemented in 2010, credit card lenders will continue to look for ways to remain stable in this highly risky economic situation. Therefore, the unfair practices of the credit card industry will remain legal.

During the first 60 days of 2009, credit card companies began instituting drastic changes.  American Express began offering $300 (with stipulations) to a select group of high-risk borrowers to close their accounts.  This will help American Express reduce the accounts that are a risk to default. Additionally, other card issuers have begun instituting changes with their offers.

Some effective ways of protecting yourself from these credit card changes are to:

Negotiate
Credit card lenders know they cannot afford to lose good customers. So they try things out on the public to see how they’re received. Their intent is to not provoke customers but to maintain their own stable financial situation. If a change works, they stay with it. If they start to lose good customers, they’ll back off. You, as a valued credit card customer, are the voice credit card lenders need to hear. By just picking up and moving elsewhere won’t help the problem because the lender is unaware of the reason you left.  Call your lender and admonish them when they hurt good customers. Your input will be joined by many others who voiced the same complaint. Based on the magnitude of the complaint, the most pressing will be addressed and, more importantly you and the other complainants, you stand a good chance of having a bad change reversed. Credit card lenders want to stay in business and don’t wish to drive off good customers. If enough people complain, the lender will soon abandon an unsuccessful tactic.

Scout the territory
If you are not successful in your attempt to negotiate, don’t be reluctant to close a credit card account, although it should be used as a last resort.  The lender doesn’t know whether you’ll play that card or not. Don’t be afraid to discuss the possibility. Loyalty is a two-way street. The person you speak with when you call Customer Service is assigned to placate you. Oftentimes, they have playing cards unknown to you. Ask if they have a promo going on that will allow you to open a new account with better terms.

If you are contemplating closing your account, beware because it can backfire. You will hurt your credit score if you close older accounts that show long credit history. With fewer cards, you'll probably increase your debt-to-available-credit ratio.

If you decide to close the account, work hard to reduce the balances on other cards to keep that credit ratio healthy.  Otherwise, you could face even more rate increases.