What Can You Do with Rising Credit Card Interest Rate?

In reality a lot of people believe that the interest rates of their credit cards are likely to remain the same forever, these rates can in fact go up and down as times goes on. Because of this low interest credit cards are actually not worth your trouble sometimes simply because they turns into high interest credit cards quickly. You have to look into the details of your credit card statements as they come in because you can’t predict when your credit card company could be plotting an interest rate increase. They’ll need to give you 15 days’ notification of the interest rate hike, so you will have to do something quickly if you wish to keep away from more interest rate obligations.

rising credit card interest rateHere are a few things you can do if you ever run into the problem of rising interest rates on your credit card:

 

1.Tell the credit card company that you do not accept the new rate.

This will give the credit card company the option to either keep you at the old rate or close your account. If your account is closed, your card will only continue to be active until your past purchases have been paid off in full. Sometimes you will find that the credit card company is bluffing, and they are just trying to see if they can raise your interest rate for no good reason.

 

2. Try to negotiate a lower rate of interest.

You may not be able to keep your card at your current rate of interest, but you may be able to get something a bit lower than what the credit card company wants. There is nothing wrong with trying to talk to your credit card company to see if you can come to some kind of understanding.

 

3. Pay off your remaining balance right away.

You may have to cut back on spending in other areas, but it makes sense to pay off your credit card now before the new rate takes effect. You do not want to be left paying off your credit card at a higher rate of interest if you have the ability to go ahead and pay it off now.

 

4. Keep the card at the new rate.

Sometimes that raise in interest is not that bad, and other times you will determine that you do not really have any other option. If it seems that you do not have any other options on the table, then you may just be forced into paying off that credit card debt at a higher rate. You can always ask for a lower rate in the future if you begin to make your payments on time and do not have any problems with your credit card. {Also read Low Interest Credit Cards- Are They For Real?}

Even though low interest rate credit cards always seem like the best option, you have to realize that the rates could change rather quickly. You should also look at other factors when choosing a new credit card because that interest rate might not always be there for you in the future.

ABOUT THE AUTHOR

This article was written by the writing team of NewHorizon.Org. The company is continously giving out information to people who are ready to repair their credit and improve their credit score. If you are looking for credit rebuilding credit cards click here.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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