Common Reasons Why Your Credit Card Interest Rate Suddenly Rises

Your credit card interest rate has a direct impact on your financial burden and will add to the burden of the cost each month. Higher interest rate will lead to higher financial costs as well. This means you will pay more for bills on your credit card than when you pay with a lower interest rate.

Although you may initially have a credit card with low interest rates, your credit card issuer can raise the interest rate. Unfortunately, the current situation only requires creditors to notify you within 15 days (in some cases) before the increase in the interest rate on your credit card. It does not give you much time to take action if you want to pay the bill at a lower rate.

Creditors have a reason to raise your interest rates. You can usually contact the credit card issuer to find out why you got a high interest rate. Based on a survey of consumer action (read here), your credit card may have been closed for one of the reasons given below (note that not all reasons within your control).

1. You are late making a credit card payment.
2. You are late paying another credit card.
3. Transactions you approach the credit limit.
4. Your past credit limit.
5. Your credit card is another approach the limit or even have crossed the line of credit.
6. Your credit score down.
7. You have too many credit cards.
8. You have too much debt.
9. You filed for bankruptcy.
10. You give false information to the bank.
11. You fail to comply with all the terms of the credit card holder agreement.
12. You are using a credit card illegally.
13. The business strategy of the credit card issuer has changed.
14. Changes in market conditions.
15. If the interest rate increases, you have the option to close the account and pay the bill at the old interest rate.

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