Can Your Credit Card Company Just Up and Raise Your Interest Rate?
Can Your Credit Card Company Really Change Your Rate?
One minute you’re paying a decent 9.99 percent interest rate to your credit card company and the next minute you get a notice saying that the interest rate is being changed to more than 25 percent. Is this legal? Can your credit card company really change your credit card interest rate without your permission?
It’s a Sad Fact
Unfortunately, if your credit card company feels as though you’re in “universal default” they can up your credit card interest rate as long as they give you 15 days notice. Think you’d never fall into universal default? It’s easier than you think. If you’ve made a late payment to any of your credit cards, have taken on what your credit card company deems as too much debt, or your FICO score has significantly lowered, you may be in universal default.
What Can You Do?
If you’re receiving notice that your credit card interest rate is being raised, you can apply for a credit card with a lower interest rate and do a balance transfer. This will ensure that you don’t get stuck paying the higher interest rate and that your credit card company doesn’t get away with this unreasonable tactic.
To apply for a low interest credit card, visit this website with a list of low APR interest credit cards.
Comments
In reference to"can credit card companys raise your APR",my CHASE card went from 9.8% to 19.99%,two month later it went to 23.99%,then a month later to 25.99%.All without notification.Never once was I late or over the limit.They said I was late on an electric bill or some other bill,which is none of their business as long as they got their money on time. I also paid two or three times more than the minimum due every month.
Posted by: Clifford Barickman | April 17, 2006 1:15 AM
I don't even carry a balance on my cards and my rate went up to 25%
Posted by: David Jordan | April 26, 2006 6:39 AM
Chase did the same thing to me and I made two huge payments and then they said my electronic payment the third month arrived late. The jacked me way up.The only thing I can do is pay them off and NEVER use them again!It does not matter if you make min. or more than required, it is all a game to them, now more than ever since Congress has allowed them to really "nail you" for a payment.
Posted by: sarah | April 26, 2006 9:52 AM
on can your credit card rais your intrest rate?
I had a fleet credit card at 7.9% and without notice they raised it to 13.99% I always paid more that minimume. I called them and asked why they raised my % and they said they raised it because they wernt making any money off of me.
so apparently they can raise the % any time they want to.
Posted by: Harold Hughes | April 26, 2006 1:38 PM
When my Providian card raised my payment from $169 a month to $219 a month (for no reason), I got a re-finance on my house, payed all my cards off, and and cancelled them. One of my cards ($600 max), offered to maintain my account, no yearly "membership" fee and no rate change as long as I don't charge anything on it. Sounds stupid, until you realise that you need a card number for anything you make reservations for!
Posted by: Rsaymond J. Combs | April 27, 2006 1:23 AM
Credit card debt is akin to indentured servitude of old, only the contract can be changed at any time without one's agreement.
Is there a consumer advocacy group proposing legislation to control the credit card slave masters, for the Public good?
Posted by: P. .J. Severtson | April 28, 2006 1:04 PM
MBNA is another one who is again changing everything about payments, default charges, etc.
My account with them has been closed for over a year and they still change the terms.
Posted by: Robert Schreiber | April 29, 2006 2:27 PM
Chase did the same thing to me went from 7.9% to an ungodly 25.9% with no way to ever get it paid off!! Help if anyone knows a way to get them to settle it has killed my credit rate and credit score and they are so rude and do not care that they are ruining your life and health for the stress of it all and the calls several times a day at all hours!! Please if you can help me get a hold of me I would appreciate anything you can tell me that will help elimate Chase from my life once and for all!!
Posted by: Vickie Ramirez | May 4, 2006 6:53 PM
I just signed up with a company called Advanced Debt Services. I'm afraid I gave them a lot of personal information that maybe I shouldn't have, but they sounded so attractive that I couldn't resist. Are these people for real, or have I made a horrible mistake?
Posted by: Leonard Schumacher | July 25, 2006 4:05 PM
I am enjoying just reading the messages as I am learning a lot. But I would like to see the answers to some of the questons. I'm hoping if I sign up I will be able to see them. thanks
Posted by: Teresa Conahan | August 13, 2006 10:25 PM