Consumers beware: Credit card interest rates are creeping higher

Yes, that fine print on the notice from your credit card issuer is correct: Interest rates for many cards are climbing perilously close to 30 percent.

Perilous, that is, for the consumer who carries a balance.

The reason, reports Nancy Crawley in her column in Sunday's Grand Rapids Press: "Banks began boosting rates after President Barack Obama signed the Credit CARD Act in May, making it harder for issuers to hike rates, effective Feb. 22."

So now card issuers are trying to cash in while they can.

Customers who don't carry a balance won't see a difference, except in the fine print on their statements.

But customers who do carry a balance will pay more on existing and new balances.

And in the meantime, even consumers who don't carry a balance may not be safe forever from increased fees.

A recent article in USA Today cited reports from some card issuers that they'll start charging consumers who pay balances down could start being charged fees up to $129 per year, depending on how much activity they generate on their card.

Paula Gardner is Business Director for AnnArbor.com. Follow her on Twitter or call (734) 623-2586.