Debt Consolidation - Loans & Credit Card Bill - Debt Consolidation

5 reasons your credit card rate goes up

If you want to know when your credit card rates can go up, read your contract. All details for raising your APR has to be spelled out in your card holder agreement. Your bank cannot on a whim just change the terms. They are required to fulfill their contractual obligations to you just as your are to them.

Your initial agreement should be in plain, easily understandable language. If the issuer is going to change your rate, they have to tell you when and why. What is required is that people receive notification. If your APR has gone up, below are some of the more likely reasons:

• Late payment.

• Lat payment on another debt. (If your contract has a "Universal Default" clause. This is where the card issuer can raise your rates if you are late on paying on another debt.)

• Your credit card company merged with another company. The new company has the option of changing conditions, but it must be spelled out in the contract.

• The banks cost of borrowing has gone up. The increase is always passed on to the consumer.

• Any other reason outlined in the contract.

If your bank does raise the rate, ask for an explanation. You can always try to negotiate a better rate, or go to another credit card company.

If you think your card issuer has raised rates unjustly, contact the Comptroller of Currency. Their number is 800-613-6743

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