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Released: February 15, 2012

Help Desk FAQ

Can my credit card issuer raise my interest rate?

Generally speaking, yes, your card issuer can raise your interest rate. However, it cannot do so in the first 12 months after you open the account and it can’t do it without giving you 45 days’ notice unless:

• the index upon which your variable rate is based has gone up;
• a penalty rate is being applied because your payment is more than 60 days late;
• your introductory rate (that has been in place more than six months old) is expiring; or
• you haven’t made your agreed upon payments under a workout agreement.

If you close the account before the rate hike takes effect, the issuer may increase your monthly payment so that you pay the balance off in five years. Or it may double the percentage of your balance used to calculate your minimum payment, which will also result in a faster repayment.