by Joseph Kenny | 05/14/09

All across the country, credit cardholders are facing dramatic changes in how (or if) they use their credit cards. In the present economic situation, a number of credit card companies are hiking up interest rates while slashing available credit lines, all in a bid to protect their interests from the damage that is defining the global economic crisis.

Credit cardholders are dealing with some harsh consequences, both in terms of what they will have pay each month and what reduced credit limits will do to their credit scores.

What is clear is that both changes are happen more often. More issuers are jumping on board the bandwagon of credit limit reduction and interest rate increases. For example, the rates on about four million cardholders were increased by Bank of America just last week.

From the card company's perspective, it is matter of managing their accounts more conservatively due to the troubling nature of the U.S. economy, and as a direct response to the amount of card-related debt they have been forced to write off.

The recent changes have been harshly criticized by a number of consumer advocacy groups. They characterize the shift in policy as a means whereby banks will be able to get more profits from healthier segments of their business.

There are some factors that are determining the decision of credit card issuers to make changes to individual accounts. For instance, if you have a low credit score, you may expect to see increases in interest rates among other things.

The figures vary as to what impact this will have on the consumer base as a whole. There is no doubt that many card users will be dealt a heavy blow if card companies continue with their new policies. Even those who have not had trouble making payments and have decent credit scores may be affected by this new trend.