What to do when the interest rate of your credit card increases

Frequently you can get a new credit card with a low or zero interest rate,typically for a pre-determined time period. Once the introductory rate is up, the interest rate increases. There certainly are other times as well, when a credit card company can raise the interest rate of your card. So what can you do, if this happens to you?

• The first and maybe the obvious one is not to carry a balance on the card and pay it each month. The lower the balances the less of an impact the interest rate increase has.
• pay off the card as soon as possible to minimize the rate increase
• transfer the balance to another credit card with a lower interest rate - Note. There will be a balance transfer fee, see if it makes sense to transfer in your situation
• try to negotiate a lower rate by calling the credit card company
• call the credit card company and opt-out of the higher interest rate, as a result you will still have to pay what is owed on the card and once it's zeroed out the account will be closed.
• just keep paying your credit card on time with the higher interest rate, call the card issuer in six months or so and ask for a reduction on interest rate, it doesn't hurt to ask.

If you are looking for a new credit card or card with a low interest rate, check what is available and will work the best for you.