Defending your credit score requires more vigilance now

But now the rules of the game are changing, and consumers are the last to know: Credit lines are getting cut, interest rates and fees are rising, and credit cards are being canceled by banks.

"It's happening to more than half of the credit cards in this country," said Ben Woolsey, consumer research director for CreditCards.com and a former credit card industry executive. "It's something we've never seen before."

And it's not just customers who are delinquent on payments or who carry high balances. Even those with the best credit are being subjected to some of the changes.

"Banks are just reacting to the potential for future losses," Woolsey said. "Reining in credit lines is just a way to mitigate risks."

New regulations governing the industry go into effect more than a year from now and a bill cosponsored by US Representative Barney Frank, a Newton Democrat, reining in the companies is pending in Congress, said Ed Mierzwinski, a consumer expert in the Washington, D.C., office of the Massachusetts Public Interest Research Group.

But there are a few strategies consumers can employ to defend their turf.

Mierzwinski recommends consumers do what they can to preserve their credit ratings and avoid the triggers that could boost interest rates: Keep balances to less than a third of limits, use dormant cards at least once a quarter, and pay above the minimum as soon as the bill is received.

"As a consumer, all I can tell you is understand that you should pay your credit card company right after you get your bill," Mierzwinski said. "That way you don't face any penalties. My best advice is to not go anywhere near your limit."

It used to be advantageous to close unused accounts and consolidate debt to a single lower interest card, he said, but now credit scores favor having more available credit. Mierzwinski said it can actually be in a consumer's favor to have three or four credit cards as long as the balances are zero or low.

If you do close dormant accounts, Woolsey suggests you do it on your own rather than risk the bank closing the account. This can help customers avoid the appearance of an adverse action.

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