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Why are my credit card interest rates going up?

  • When the Fed changes the federal funds rate, the prime rate changes as well, and your credit card APR fluctuates proportionally — meaning that an increase in the federal funds rate and prime rate results in an increase in the APR on your card.
  • You may have received your credit card at a promotional rate that has now expired.
  • Your credit score may have declined.
  • Your payments are more than 60 days past due.

Will credit card companies lower your interest rates if you ask?

  • Credit card issuers are not required to cut your interest rates, but it never hurts to ask. Some people’s credit rates have been decreased.

Why should I pay my credit card in full?

  • No interest is charged on your balance.
  • Possibly increase your credit limit.
  • Your credit score will improve.

How do I ask for a rate reduction?

  • Remind the lender of your pay history.
  • Remind the lender of your loyalty.
  • Shop around and see if lower rates are being offered by other lenders
  • Be polite but firm.