The current economic situation affects many sectors of the economy, including the credit card companies who issue and manage lines of credit to millions of American citizens. With many companies downsizing, many credit card holders are defaulting on their payments and outstanding accounts have increased. For the reason, credit card companies are trying to increase their existing revenue streams to help mitigate their financial losses. One way they are filling the gap is by increasing the credit card rates for their existing customers.
Many people that were affected by the increase in interest rates are upset. However, there is not much a consumer can do because the rise in credit card interest rates are out of their control. So regardless of your credit history or years with a specific account, you may find that your credit card rates are rising right now, even with the falling interest rates on Wall Street.
To ensure that you are aware of all the credit card news that will affect you personally, make sure to check with your credit card provider. Legally, you must be notified of changes such as increased credit card rates for fixed rate cards (15 days prior) or a decline in the amount of your available credit. Additionally, new laws will take effect soon (in 2010) that will prevent the credit card companies from raising the interest rate on the existing balance you carry; the rate spike should only apply to new purchases after the date indicated in the term update they provide you with.
If you discover that you are being subjected to a rising credit card rate and have a good, solid history with the credit card provider, you can always contact them directly and request that they do not apply the change to your account. Whether or not they are going to adhere to your plea is another story and you can always take your business elsewhere (via a balance transfer) if they do not agree.
