What to do if Your Credit Card Interest Rate has Increased?

| July 29, 2012

Today, more and more credit card holders face this overwhelming and stressful circumstance of being rate-jacked. But of course, since the recession “rate-jacking” has been rampant.

What is rate-jacking? Rate-jacking is a modern term used to describe an event that takes place wherein one’s credit card rates, as in the Annual Percentage Rate, “suddenly” shoots up and drastically increases.

What to do when you are suspecting rate-jacking?

While most people lean over to the investigation of the odd credit card interest rate increase to build up cause for negotiation so that the rate can be reverted, lots of people are lost in the overwhelming circumstance of keeping up with the lenders.

For this, here are a set of steps that you can take in order to regain control over your credit card balance and rates thereby beating this cunning unfair treatment by your lender.

  1. Know as much as you can with regards to the coverage of your existing account and outstanding balance in terms of the laws that are supposed to back your rights as a borrower. When it comes to getting your lender’s attention, a good knowledge on the governing law of the land regarding the issue and a helpful handful of quotations thereof will extremely be helpful.
  2. Give your credit card company an immediate and a polite call. Be sure to gather yourself up and get your cause together. Ask for a solid explanation as to why your credit card rates suddenly sky-rocketed. Mention dates of notices (such as when you first knew that your rate hiked, or rather jumped, from this percentage to this percentage in this span of time, etc.,) and even your assumed performance as a borrower when it comes to repayments.
  3. Ask your lender’s office if there be any way that you can negotiate and find a mutual fairground so that you regain your most manageable interest rate; or if there is any way that the increase can be halted. If you and your lender’s office can work something out the better. If things continue to be unfair to you, then move on to the next step.
  4. Write a formal letter of complaint. This will not only lay-out your cause in a medium that your lender’s office can review and consider for negotiation but it is also a key component that smoothens out things when it is time to get the Office of the Ombudsman involved.

Meanwhile or even at the beginning of the suspicion of rate-jacking, you can do credit card shuffling. Enroll in another credit card company, move your balances, leverage benefits of zero-low APR for the first few months of having the credit card and strive to settle the balances as soon as possible.

If you had been a faithful borrower such that you make it a point to repay your balances then all the more it is important to emphasize this in raising your cause to your lender. However, even the most faithful borrowers experience the dilemma of sudden increase in rates. In these instances, the steps laid-out above are the best ones that you can ever do to regain full control of your credit card. Of course, a credit card is supposed to be something that will help you out and not stress you out.

Written by www.financefox.co.uk

Category: Credit Cards

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