Managing credit card changes

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NEW YORK (CNNMoney.com) -- 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, says Curtis Arnold of Cardratings.com. In addition, fees on balance transfers are going up. Credit lines have been cut up to 50% in some cases he says. Reward cards carry more strings; card issuers have been increasingly closing out credit cards if you haven't been using them frequently enough. And variable rate credit cards are putting floors on how low the interest rate can fall to, according to Arnold.

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. Make sure you ask to speak to the manager says Arnold. And make sure you tell that that you'll complain to your friends and co-workers and post complaints on consumer blogs. You may have to threaten to leave the credit card company, a credit card company doesn't want to lose your business. The replacement cost of a customer is about $200 says banking and credit card analyst Dennis Moroney at TowerGroup, a business consulting company. And don't forget that there is a spotlight on the industry right now. "Your leverage is stronger than you think," says Arnold.

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 says Moroney. 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. Look for a credit card that has a grace period for payments and no charges for a balance transfer fee. Make sure you compare credit cards on web sites like CardRatings.com, Bankrate.com and Creditcards.com. And don't discount smaller credit card carriers either.

4. Look for change

The Federal Reserve had proposed a list of changes to the way credit card companies operate. Among some of those changes: the elimination of double cycle billing. The Fed has received 61,000 comments from the public - that's the most ever on a proposal. And the Fed right now is in the process of reviewing these comments. Meanwhile, the Office of the Comptroller of the Currency has since asked the Fed to step back on these proposals. Moroney says it's unlikely all the changes will pass this year, but there could be one or two changes that pass. We, of course, will continue to bring you the latest.