The loosely regulated credit card industry is trying to fill in their financial gaps with
higher interest rates to their cardholders. Individuals concerned that their rates may go up should carefully review all the material sent to you from your current credit card companies. Legally the industry can consumer rates at will and without notice, so it is up to you to be your own consumer advocate.
Despite multiple rate cuts by the Federal Reserve, many consumers may start paying higher interest rates for the same credit card they have had for years. Ed Mierzwinski a consumer advocate and consumer program director for the U.S. Public Interest Research Group, notes most major issuers can change your interest rates, for many reasons including seemingly bad behavior of the cardholder as well as just wanting to increase their profits.
Citibank recently announced a rate increase on average of 3% to help with their bottom line. Dozens of blogs have postings from irate consumers who have had their credit card interest rates double due to no fault of their own. This is just the beginning of the trend and until tougher regulations and laws are issued by the Feds, there are no signs of it stopping.
For those who are troubled by rate increases you can contact your credit card company and see if they are open to negotiation and lowering your rate. Additionally, if you are lucky enough to have an excellent credit score, it may be time to research a 0% credit card debt transfer offer and take advantage of it.