Credit Card Interest Rate Increases
http://creditfederal.com/article/articles/586/1/Credit-Card-Interest-Rate-Increases
By CreditFederal.com - A good or bad credit personal loan, auto and mortgage financing, and credit card resource.
Published on 09/25/2008
Have you suffered a credit card interest rate increase? Here are reasons why your rate may be higher, and tips on how to avoid having your rate raised. To reduce credit card debt, apply for a 0 introductory balance transfer.
Why Credit Card Interest Rates Increase and How to Avoid Rate Hikes
Not only does a higher credit card interest rate cost you more money on charges that are carried forward (unpaid in full each month), but having your rate increased may be because of bad credit activity which may raise the interest rates of your other lines of credit.
In that credit card fine print are situations which your issuer may raise your rate.
Although there are credit card reform proposals, existing law requires your creditor to notify you only 15 days before your rate increases.
Here are some reasons why your credit card company might raise your interest rate:
If your credit card company raised your rate, you have the option of closing the account and paying off the balance at the old interest rate.
If you don't understand why your credit card company raised your interest rate, call the customer service number on your credit card statement. And it certainly won't hurt to ask to have your rate lowered.
Too much credit card debt? Apply for a 0 introductory balance transfer.
In that credit card fine print are situations which your issuer may raise your rate.
Although there are credit card reform proposals, existing law requires your creditor to notify you only 15 days before your rate increases.
Here are some reasons why your credit card company might raise your interest rate:
- making a late payment on the card, or on another credit card even if it isn't from the issuer who raised your rate
- going over; or nearly over, your credit limit, whether on the affected card or another card
- suffering a lower credit score, whether due to action related or not to the credit card
- having too many credit cards
- having too much debt
- bouncing a check
- filing bankruptcy
- filing deceptive information with the issuer
- breaking the credit card terms
- using the credit card illegally
- having a variable rate card which the base rate had increased
- changing market conditions
- your credit card issuer simply chose to raise rates
If your credit card company raised your rate, you have the option of closing the account and paying off the balance at the old interest rate.
If you don't understand why your credit card company raised your interest rate, call the customer service number on your credit card statement. And it certainly won't hurt to ask to have your rate lowered.
Too much credit card debt? Apply for a 0 introductory balance transfer.