Check your credit card rate; some increases can be stopped

Quick, do you know how much interest you pay on your credit card?

I did an informal survey this week. Of the dozen or so people I asked that question, none knew the answer.

But we should, especially now.

With their own houses in disarray, many financial companies are looking at ours and if they don't like what they see -- a shaky credit score, a sudden increase in charges, a card with a zero balance -- they'll raise rates and lower credit limits.

Citibank is raising rates on some of its card holders 2 or 3 percentage points. The unlucky ones will find out in their November statements.

American Express is raising rates, too. And the Wall Street reported last week that Chase is raising rates on some credit card cash advances and adding fees to accounts that have carried large balances for two years or more.

The companies have to alert you to the changes but the notices can be easy to miss with all that they seem to stuff into those envelopes.

You can say "No thanks, I'd rather keep my lower rate." In their language it's called "opting out," and you'll have to send them a letter.

If you do opt out, you can pay off your account at your old rate and continue to use the cards until they expire. Once the card expires you'll have to reapply or find a new credit card company.

The better idea, of course, is to not carry a balance so you don't have to worry about it. And that's another good reason not to charge your holiday gift-giving this year.

So to recap: If you don't know your interest rate, call and ask. It seems obvious, but read your statements and all the little bits of paper that come with it. Look for notices that say your limit has been cut, the rate hiked.

Before you go on a holiday shopping binge with your card -- something I don't recommend -- check how much credit you have left. Make sure all purchases have posted. The last thing you want is to get hit with a fee for going over your limit.

If your card balance suddenly jumps because of a large purchase, monitor your credit. That's the kind of thing that can trigger a change to your credit limit.

And finally, complain. These hikes come, after all, after the Federal Reserve cut its benchmark interest rate, proving once again that credit card companies apparently think they can pretty much do what they please. It might be time to ask our Congressional delegation to revisit the idea of increasing regulation of the industry.

CRAMMING REVISITED: I'm still hearing from readers about my column a few weeks ago on cramming, which is when charges are put on your bills for services you did not ask for or receive. The charges are from what the phone companies characterize as third-party billers.

A reader from Charlotte, Jim Crutcher, e-mailed to say that he was able to get a "third party block" on his AT&T account.

Mr. Crutcher says he's had no problems with unauthorized bills since he got the block.

I checked with Della Bowling, a spokeswoman with AT&T, and she confirmed the tip.

Bowling says customers "can call AT&T's service representatives and request a third-party bill block. This would keep any enhanced services from a customer's bill, unless they opt to subscribe or sign up for such services."

Check with your phone company to see if it offers blocks.