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It is a common story. You get a credit card and you find that the interest rate is nice and low at five percent. However, due to something in your contract, or a decrease in your credit score, that interest rate suddenly shoots up to 20 or even 30 percent. This can happen without notice right now, but legislation is being put in to give you at least 45 days notice. Even if that legislation is put into effect, it’s still not much time to do anything about an increased payment.
To make sure you are not caught off guard with high credit card interest rates, follow these tips.
First, you should look over your statements as much as you can. Look for any changes in your interest rate. Sometimes credit card issuers will show that there has been, or will be, an increase in your interest rate on your credit card statement. You may find that change in interest rates is buried in your bill, so be thorough each time you get your credit card statement so you are not caught off-guard.
If you do find you have had your interest rate increased, even though you have been making your bill payments on time, you can call customer service and ask them to lower you back down to the original rate. This can often work and only takes a few minutes for you to do. Don’t be afraid to call, it could end up saving you hundreds of dollars every single year, so pick up the phone and get to it!
Some credit card companies like Citigroup do not raise credit card interest rates based on credit scores, but some credit card companies do. This is why it is very important that you monitor your credit so that you are not caught off-guard by a higher interest rate. You get one free credit report every year by law, so you should try and see what your credit score is. If you find your score has gone down due to a late bill payment, then you should talk to your credit card company to keep them from raising your interest rate as a result.
If you want to repair your credit and keep your debt level down so that you don’t have to worry about higher interest rates, then you should contact DebtReliefPlace.com. They are a debt settlement solution company that will negotiate with the credit card companies and your other creditors to create a fixed-fee settlement system for you. Instead of falling behind with debt, you will have a fixed fee monthly payment plan that will get you through your debt within one to three years. They are honest and straightforward in their approach and they will not promise you anything they cannot deliver. As well, all the funds that are paid towards debts are then placed into an FDIC insured account so there is no worry about fraud to you.
Don’t be caught off guard with sky-rocketing interest rates. Keep an eye on your statement, pay off your credit card and monitor your credit score to stay safe.
