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Consumer-friendly credit cards from community banks and credit unions during the recession Pentagon Federal Credit Union's Visa Platinum Rewards card

Some lawmakers are calling for a freeze in rate hikes until new legislation protecting consumers is enacted or new regulations kick in next year. But for now, credit-card issuers are free to arbitrarily raise rates and cut benefits. Still, smart credit users with good credit can assemble a hard-working portfolio of cards -- especially by applying for cards from community banks and credit unions, which often have lower rates than money-center banks.

Credit unions by law must cap interest rates on any type of lending at 18%, but most credit-card deals are much better. One of our favorites: Pentagon Federal Credit Union's Visa Platinum Rewards card. There is no annual fee, and you get a 5% rebate on gas, 2% on groceries and 1.25% on everything else. The card, with an interest rate of 13.99%, is usually best for holders who pay off the balance each month. But it also has a balance-transfer offer with a 2.99% rate good for the life of the balance, with a maximum transfer fee of $100.

Another balance-transfer offer worth considering is a Visa Classic card from Pulaski Bank & Trust (soon to be known as Iberia Bank), in Little Rock, Ark. The 0% balance-transfer offer is good for six billing cycles, and there is no transfer fee.

These days, especially, it's nice to get a little something back from your credit card. The BP Visa gas card earns a 5% rebate on gas, 2% on travel and dining, and 1% on everything else. Plus, you get double rebates for the first 60 days. We also like the Simmons First Visa Platinum Travel Reward card. You earn one point for each dollar spent; it takes 22,000 points for a plane ticket anywhere in the 48 contiguous states.

Despite a $35 annual fee, for a low rate it's tough to beat Iberia's Visa Classic cards, with a purchase rate fixed at 6.5%, compared with a national average of about 13%. Farm Bureau Bank's no-fee Platinum MasterCard currently carries a low, 5.24% variable rate. We like Pentagon Federal's card among those that give you cash back, as well as the American Express Blue Cash card. With the latter, you'll earn a 1% rebate on grocery, drugstore and gasoline purchases, and 0.5% on all other purchases until you spend $6,500. After that, you'll earn 5% on groceries, gas and drugstore items and 1.25% on the rest.

A flock of new cards is tapping into our new, frugal zeitgeist by helping you pay off your mortgage, rebuild your retirement fund or save for college. For each $2,500 you charge on your Wells Fargo Home Rebate card, the bank applies 1% of that amount to the principal of your Wells Fargo mortgage. Fidelity Retirement Rewards American Express card gives Fidelity account holders a 2% rebate that can be deposited in any Fidelity-managed individual retirement account. The Schwab Bank Invest First Visa card sweeps a 2% rebate into your Schwab IRA or brokerage account.

The new Upromise World MasterCard deposits a 1% rebate on all purchases in your Upromise college-savings account, then adds another 10% rebate on spendng at drugstores and groceries. Depending on the card, you can add to your Upromise account from rebates on gas purchases or dining. Fidelity's 529 College Rewards American Express card earns a 2% rebate that can go into any Fidelity-managed 529 account.