The trend toward poor consumer

credit management, credit card lenders say, has lead to generally increased

rates across the board. Punitive rates for poor credit behavior can go

as high as 30 percent.

"Careless consumers, who

don't pay on time, seek bankruptcy protection, or who over-extend their

credit limits can expect to their rates go up sharply," said Roll.

"On the other hand, careful consumers, who mind their financial p's

and q's, can still get excellent credit card rates."

About 55 percent of the available

credit card market offers their best customers variable-rate plastic,

based on the current prime rate, plus whatever over-prime a particular

card company wants to charge. So, technically, the Federal Reserve does

have some impact on credit card rates.

"These are some of the

best credit card deals for consumers," Roll said. "Good rates

are a reward for good credit management."

Even the so-called "fixed-rate"

credit cards are subtly impacted by the prime rate, because of its effect

on the cost of doing business for credit card companies, as well as mortgage

bankers.

Two of the best strategic tips

Roll recommends for managing your credit card debt wisely are:

Talk to your credit card

lender, if your credit performance is good or has improved. A study

conducted by the Public Interest Research Group indicates that more

than 55 percent of those who take the time to speak with their lenders

receive reduced rates.

Prepare for seasonal low

rate offers. Credit card companies usually start to make low-rate limited

time offers to their best customers starting in January. In order to

look like a good prospect for those offers, work to pay down your credit

between now and then.

"Also, don't assume mortgage

rates will remain as low as they are forever," said Roll. "Good

credit card management now will better prepare your family for whatever

lies ahead for the economy."

For further useful information

on every aspect of homeownership, visit www.AHAHome.com.

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