Have you completely read through your credit card contract? Do you know when it is okay for your creditor to raise your interest rates? If you are not sure about how and when your rates can be affected over the life of your contract you should take a few minutes to read your contract thoroughly from beginning to end.
Creditors must have clauses in their contracts that give them the right to change your interest rates. They are buried in the contract and if your rates have gone up then you can be pretty sure that they are there and you may have missed them on your first read through.
You need to ask yourself the following questions if even after reading your contract again you are still unable to figure out how your credit card issuer can do this to you.
Recently, have you ever been late paying your monthly credit card payment. That’s because this factor is likely the reason why your interest rate is going up. The credit card company has the right to raise your interest rates whenever you are late making a payment.
Do you remember if you have been late on any other debt payments? If there are any late payments, then this can cause your interest rates to increase even if they are not associated with your credit card. Your creditors have access to your credit report and all payments that you make are on there, if they see you made a late payment to someone else it can get them concerned that you will do the same to them in the future. Always making your payments on time every single month is therefore important because of this very reason.
Have you found out if your credit card company has merged with another company? Your contract can be affected by mergers. As long as they let you know what is going on and why, then the acquiring company has the right to change the rules on you.
It is amazing what credit card companies can get away with legally. Making sure that you understand the ins and outs of the contract is all that you can do in order to avoid being stunned when you get hit with extra fees.
Before you sign for a credit card, you need to decide if it is really the right thing for you financially since credit cards are a big financial responsibility.
When you sign your credit card contract, did you assume that the interest rate quoted in this contract is the rate you will always be paying? If so, then you assumed wrong. Increasing your interest rate is what the credit companies can do. Saving you a lot of stress in the long run is knowing how and why.
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