Whether you used your credit card for convenience or necessity, All most all of us take credit cards for granted. However, life in the land of plastic may soon be changing and not for the better. There are two reasons why.

The first – As with mortgages, default rates on credit cards are raising. According to the experts, default rates industry wide have risen nearly 50% since last year.

The second – New rules the favor consumers at the expensive of banks — and banks are reacting : lower limits, raising rates, and closing accounts. These factors will mainly affect those with lower credit scores, but they can also cause lower credit scores.

How? If your limit is lowered or your card is cancelled that lowers your available credit and raises your percentages of credit used. The result is a lower credit score.

What can you do? Keep an extra card or negotiate with the bank. Best advise is to kept a clean credit history.

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Other Resources

• 2010 Rules For The Credit Card Industry
• Credit Card Companies to Cut $2 Trillion