We all know that if you miss a payment, get behind on payments or don’t pay the minimum amount, the credit card company may raise your interest rate. But, did you know that even if you make every payment on time they may raise your rates?
Laurie Kellman wrote this story which appeared in the Houston Chronicle. Witnesses told the Senate about stories where they made every payment on time, but their rates still went up. The credit card companies defend the practice on the grounds that the consumer’s overall credit rating went down. Congress is looking into the matter.
In the meantime, make sure you review your credit card statements, and inserts, very carefully. If you see a rate increase, call your credit card company and ask them about it.