Some FACT'S

FACT: It is more difficult now than it was six months to a year ago to qualify for new credit in the form of a credit card.

FACT: It is also way more difficult to obtain a home mortgage or a home equity loan. The days of a 0 percent down payment and a low FICO score qualifying for a home mortgage are gone. That ship has left the dock.

The credit cycle has been tightening for quite some time and the recent activity on Wall Street and the uncertain terms of the bank's bailout has increased it to close their issuing new credit lines.

They have become miserly and scrooge-like in their lending, which doesn't really make sense since THAT is their business.

If you really feel you need access to additional credit with a credit card, I would recommend that you review your finances carefully and ensure that you are protected as much as possible from any negative consequences of this current credit cycle.

Here are some things to consider:

Credit card agreements can be changed by the card issuer for many different reasons. Be aware that many issuers may decide to lower credit limits in an effort to minimize their exposure. What this means for a cardholder is that you will have less access to available credit and your credit score may decrease due to an increase in your credit used versus credit available ratio.

A possible decrease in available credit means you are more vulnerable if you rely on credit for emergencies. If you have not started an emergency savings account, now would be a great time to start. The goal is to have three to six months of living expenses available for unexpected expenses.

If you are using credit to extend your income, stop immediately. Your credit supply may soon run dry and adding to a debt load right now could be disastrous. Create a spending plan and bring your expenses in line with your income. If you need help doing so, contact a reputable credit counseling agency that can review your finances and assist you with creating a workable spending plan.

My advice to anyone would be to tighten your belt and weather the storm. I hope you will refrain from obtaining any new credit cards for the time being.