Consumers will get some relief from a rather nefarious practice that many credit card companies now participate in. I’m talking about the credit card issuers raising the interest rates it charges on cardholders balances any time they want, for any reason they want.
The Federal Reserve is responsible for creating these new rules which are designed to prohibit what are perceived to be unfair practices. We at www.bestcreditquote.com agree. For banks to arbitrarily raise rates on customers that pay their bills on time is just plain wrong. It is high time that practice ended.
It is unfortunate that the credit card issuers are now apparently raising rates ahead of the new rules going into affect on January 1st. Typically interest rates on revolving balances were only raised when account holders were late in making payments.
If your credit card company is going to raise your card’s interest rate they must first notify you so keep an out for that in your mail. To counter the higher APR you can either pay your balance in full or contact your credit card company to negotiate a lower rate. Sometimes the banks will work with you because they don’t want to lose your business. It’s definitely worth a try.