Have you received a letter from your credit card company?  (It might be bundled in the same envelope as your statement, or it might be delivered separately.)  If so, be sure to read it.  Why?  Because, several credit card companies are changing their terms, rates, and policies.

According to Credit Addict, both Citibank and American Express have recently made several changes.

A summary of the changes made by American Express –

* Cash advance APR is increasing to Prime + 17.99%
* Late payment APR is increasing to Prime + 14.99%
* Default APR is increasing to Prime + 23.99%
* Foreign transaction fee is increasing to 2.7%

A summary of the changes made by Citibank –

* Purchase APR is going up to a minimum of 16.99%
* Cash advance APR is going up to a minimum of 21.99%
* Default APR is easier to trigger, and increasing to a minimum of 23.99%
* Fees for foreign transactions are increasing (new 3% transaction fee)

Click over to Credit Addict for complete details about the cardholder changes made by American Express and the rate increases by Citibank, along with information about how these changes will or won’t affect you.

Personally, I’m a big fan of life without credit cards.  I never have to worry about late fees or changes to my cardholder agreement.  Sure, there are hassles associated with a cash-only life, but I’d rather put up with those hassles than deal with another credit card payment!

If you are thinking about moving away from credit cards, may I suggest the Envelope System.  For those unfamiliar with this super-simple money management system, I’ve made a quick, four minute video tutorial, explaining the Envelope System and how I use it to manage my cash.  Check it out and let me know what you think.

For those who might be concerned about changes to your credit card cardholder agreement, you might want to visit your credit card company’s website or even give them a call and ask about any changes.  Also, you have the right to opt out of any changes they make, but they also have the right to cancel your account!  Be sure to visit the Credit Addict site and read more about details and how / when you should opt out.