The first month of 2008 hasn't brought any positive changes to the US financial market. Economists are talking about recession. Its signs are obvious - mortgage crises, stock market fall and constant growth of consumer debt. The Fed rate cut is clearly an emergency measure. What's next? Experts are not very optimistic: America is likely to face a crisis on the credit card market.

Financial giants such as Citigroup have already lost billions of dollars. They will soon be looking for additional financial resources and one of them is the credit card system. Credit card users should fear an increase of credit card rates. On the contrary, consumers will see more low rate credit card deals. The Federal Reserve's decision to cut interest rates will be beneficial for most credit card owners.

The best possible way for banks to increase their profits is to raise the fees. Right now credit card market is flooded with fee free credit cards. Penalty fees for consumers with good and excellent credit rating are not very high either. By raising the fees banks will hurt the most trustworthy clients.

There is one more reason why banks are going to increase not the rate but the fees. Many credit card users also have mortgage loans. And as the financial situation worsens they are likely use their limited resources to pay off secured debts. Increased penalty fees will force debtors to think twice before skipping a payment.

So what should consumers do? The smartest move will be to apply for one of the existing credit card offers before the banks raise the fees. This is obviously the high-time to make up your mind and submit your credit card application. Why wait for the credit card fees increase? Apply now for the most favorable credit card offers.