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.