If your search for low interest rate credit cards is turning up with few options, it could be because of the new laws sweeping into the credit card industry as of February 22, 2010. According to some experts in the industry, even if you have a good credit profile, you could face higher interest rates than you have in the past.

Lenders are now putting in place the new law called the Credit Card Accountability, Responsibility and Disclosure Act of 2009.

Within this law comes some pretty harsh restrictions for the industry, in a goal to help curb some of the billions of dollars in revenue that these companies make off of fees and penalties alone. The goal is not to hurt the consumer, but some experts warn that this could be something that is inevitably going to happen.

How Can It Hurt You?

Card issuers are no longer able to boost a consumer’s score if their risk profile changes, for example because the borrower failed to make an on time payment to another lender. This may mean that these lenders need to front load the risk.

That means that the companies may charge higher interest rates from the very beginning, instead of offering even those who are a good risk a lower rate, they will increase that rate to compensate for the bad borrower’s increased security. In short, it may mean that individuals with a good score are subsidizing risk for borrowers with poor financial management.

What You Can Do

Are you powerless in this instance? Not at all. In fact, if you want a low interest rate credit card, your best bet is to do some research.

• Compare more than one offer before you accept it to be sure that you are getting the most affordable product on the market.
• Do take the time to read the terms of the account, should you decide to go forward since some companies are adding in costly fees to compensate for these increased risks.
• Do use loans and credit wisely. It goes without saying that you will pay more if your score falls significantly over a period of time.

With the new laws could come some benefits, including the limitations on overall increases. Thos who have a less than ideal credit may face the inability to borrow as much money from these lenders. While that may seem a bit devastating to those who have this level of credit, it may reduce the overall risk that all borrowers face.

It is understood that borrowers do need to make better decisions about the type of loans they take on. Low interest rate cards are out there, but finding them may be more difficult. By doing the research it will allow you to spot the good and the bad within this ever changing industry, though.

Be more mindful of what your options are in total. Invest your time in learning which companies are offering the best rates, too. That may help you to find low rates and a good company to do business with.