I saw this article on BusinessInsider.com and thought it might be helpful to some folks. It outlines five things about the interest rates on your credit cards that you might not know including:
4. Your interest rate can go up for a myriad of reasons.
An increase in the prime rate isn’t the only thing that will make your interest rate go up. “If you become 60 days or more delinquent, you can be charged a penalty interest rate,” says Clements. “That means your rate could become very high on your existing balances.” The bank can also arbitrarily decide to increase everyone’s interest rates. However, in this circumstance, if the bank wants to change the rate on your existing balance, you have the right to say no. “You would then close your card and just make payments on the existing balance until it’s paid in full,” explained Clements. “If you want to keep the credit line open, you would have to keep the higher rate.”
To read the rest of the article, click here.
Bigger Than Your Block 