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Home >> Lending >> Credit Cards
About Credit Card Rate Changes
Can my credit card rate be changed from a fixed rate to a variable rate, even if I did nothing wrong (late payments, missed payments, etc.)? In the change in terms notice, are they allowed to say that it is changing from a variable rate at a certain index, to a variable rate at a new index, even though my account was never a variable rate?
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 All of this comes down to your existing agreement and likely there is a clause that allows your credit card lender to change the terms of the agreement. The agreement change may be based on a trigger (default, change in credit score, etc.), but in some cases they are allowed to propose the change and if you continue to use the card, then that signals your approval. You may be asked to actually opt-out, which means you'll pay off the existing balance without the ability to charge on the account, but based on the existing rate and terms.
Published on BankingQuestions.com 4/27/09
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