What to Do When Your Credit Card Rates Are Raised

   The latest credit card rate hikes by Citibank and other credit card companies are leaving many consumers feeling overwhelmed. Even those with excellent credit ratings and a history of making their payments on time are often stunned to receive notice that their interest rates are skyrocketing.

   If this happens to you, what can you do?

   First, you can opt out of the rate hike. You can continue paying the lower interest rate on your balances, but in all likelihood, your bank will close your account.

   Important: Note that if you do not opt out of the rate increase within the specified period or you use your card even once, then you are automatically accepting the higher interest rate. Usually, you must choose to opt out within 15 days of receiving notice.

   Secondly, you can try switching to a balance transfer credit card with a 0% introductory credit card rate or a low fixed rate.

   While the Federal Reserve is expected to implement new consumer measures that include provisions that will not allow a credit card company to raise its rates on existing balances, these measures will not take effect until 2010.

   Congress is also considering a credit card bill help consumers. While Congress is feeling the heat of angry consumers, banks routinely give large campaign contributions that have proven quite effective in stopping banking bills in the past.