Frugal folk can raise strategy shields as credit card fees jump

— -- Americans have a complex relationship with credit cards.

They love the convenience of plastic, especially if they need to rent a car or bail an errant relative out of jail. But they detest many credit card company practices, such as raising interest rates for no reason, lowering credit limits or slapping on hefty fees.

These practices have increased in recent weeks as credit card issuers prepare for a series of reforms that will take effect in February. Among other things, the new law will limit when issuers can raise rates on existing debt. In the interim, many issuers are raising rates and fees for some of their customers. Some tips on how to cope:

If you're carrying a balance:

•Do the math before transferring your balance to a low-rate card. Several card issuers are still offering a low introductory interest rate for customers who transfer their balances. But they've also raised their balance-transfer fees, which will eat into the amount you save. For example, Chase plans to raise the maximum balance transfer fee on some of its credit cards to 5% from 3%.

Some credit card issuers cap the maximum amount they'll charge customers to transfer their balances. USAA, for example, caps the fee at $75, according to Bankrate.com's 2009 credit card survey.

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But many others don't cap balance-transfer fees, which can lead to substantial charges for customers who transfer large balances, says Ellen Cannon, managing editor for Bankrate.com.

Depending on the size of your balance, "There are still scenarios where balance-transfer deals can work for you," says Curtis Arnold, founder of CardRatings.com. Some credit card issuers are still offering a 0%, 12-month introductory rate, but you need excellent credit to qualify, he says.

•Don't be afraid to negotiate. If your rate goes up, call the credit card issuer and ask for a better deal.

If you always pay on time, pay more than the minimum and have never exceeded your credit limit, there's a good chance your credit card issuer will lower your rate, Cannon says. "They don't want to lose their good customers."