Welcome To Financial Elite!

Follow our 200K journey to get out of debt! We share our best money tips to get out of debt and build wealth.

Saturday, April 4, 2009

Why Did My Credit Card Interest Rate Shoot Up To 30%?


First off the interest rate on your credit card is never permanent. It's a variable rate. It only stays fixed until the credit card company decides to change it. Embedded in the fine print of the agreement you accepted when you opened your credit card with them they can pretty much raise your interest rate for any reason. Even if you make your payments on time and are never late.

More and more credit companies are raising interest rates now. Especially if you make them nervous in any way. If you are not paying down your balance. If you are only paying the minimum payment. If your are late even by one day with them. If they see you are late on other payments or are behind on paying other debts. All of these event will make them very nervous and you are at risk for a massive rate increase.

If you don't want your credit card payments going up: 1. don't run your balances up to the limit or 2. be sure to pay down the balance as soon as possible. When you don't have balances on your credit cards you don't have to worry about credit card companies raising your interest rates.

No comments:

LinkWithin

Related Posts Plugin for WordPress, Blogger...