Credit card companies have come up with rules and disclaimers saying that they hold the right to change some of their agreement terms as they see fit at any given time. These are strategically included in the fine print of your usual 32-page booklet. Yet, most people do not really pay attention to the fine print and it is only when minimum payments are doubled that most, and still not all, would realize the importance of reading the fine print.
These increases in interest rates can happen even when you have been diligent and on time with your payments. And when you do contact customer service, the representatives would just say that you accepted the new terms when you etched your signature on the contract so there is nothing they can do about it at all. Until such time that your account is reviewed, that high interest rate would have to be in effect.
But really, what if you do not accept the terms despite the fact that you did sign the contract? The typical response would be that the credit card company would not issue you a new card when your card expires. So, the logical choice would be not to accept the new terms. By doing this, you would then be able to keep the lower interest rate offered to you. And before your card expires, you then claim that you now accept the new terms. By then, you will have prepared reasonable terms as well. To avoid this, you should keep track of the interest rates of your credit cards, especially if you carry a balance.
Here are some strategies you can employ to keep low interest rates.
First, call your credit card company and have your current APR verified. After that, ask for a reduction. Ask to speak with a manager if you must. Determine your payoff options so that you can determine when your card would be reviewed once again.
Second, upon receiving the booklet complete with the new terms, make sure not to throw this out! This booklet will come with your statement as well as advertisements, which you should browse thoroughly so that you can look for portions announcing your new interest rates. Moreover, find information about options to not accepting the terms. You can then call your credit card company and take that option.
Exercise your right to reduce your interest rates!