Your complete guide to achieve financial freedom. Proven tips, tools and tactics for you to achieve financial freedom. Make money, save money and effectively manage your money.

What to Do When Your Credit Card Interest Rate Increases

Written by Dian Herdiana on 10:01 AM

"I was just informed the interest rate on my credit card is jumping from 10% to 29%. I've never made a late payment. I called my bank and they told me it's because some of my other credit accounts were highly utilized."

That's exactly what happened to my friend Kyle recently.

Because he was close to his credit limits on unrelated accounts his bank legally jacked up his interest rate nearly 200%.

The practice is generally referred to as a "universal review." And more and more lenders are using this trick to fill their pockets at the expense of an unknowing public.

Kyle didn't have late payments with the credit card that raised his rates. In fact, he didn't have any late payments on any credit cards. However, his lender simply decided that because Kyle was using his other credit, he somehow became a greater credit risk to them—so they nearly tripled his interest rate.

This situation hasn't only happened to Kyle. You see, I have several friends that hold high positions within the banking industry. Here's a recent comment from one subscriber who works as a credit analyst for a major national bank. This information is so hush-hush he's asked us to keep his identity secret:

"...Everyday in my job as a credit analyst I see so many mistakes people make with their credit. You are right, most all lenders do a universal review, especially credit card companies. When we review a card member's credit bureau report (CBR) we are assessing risk to the bank and our goal is to reduce risk and exposure. When we find risk we either lower the credit line, increase the APR, or close the account. That is why account performance and utilization of revolving trades is so important..."

As you can see, Kyle's situation could have been worse. The lender could have closed the account or lowered his credit limit.

And the credit analyst went on to say...

"...A lot of times we are using old income information when making a decision. Usually, when we see something that doesn't fit the card member's profile, we will call to try and get updated information such as current income and reasons for recent delinquency on their credit reports or their account with us. If we can't get them on the phone the moment we call we have to make a decision with the information we have. And that information can be several years old. If the income we have on file is older than six months I can't use it and need to call. If I don't get the card member I have to make my decision right then—I can't wait as we review thousands of accounts a month. So it is in the card member's best interest to call the credit card company and give them updated income information and any explanation for delinquency or increased utilization."

So what do you do?

First of all, if this has not happened to you, I wouldn't get overly concerned just yet. Just be aware that nearly half of the credit card lenders do some sort of universal review and it's a growing trend. To be on the safe side, whenever your income increases you should call your credit card lenders and let them know—make sure they note it in your file.

If your credit card lender does conduct a universal review on you and you're negatively affected by their decision—here's what to do:

  • Contact your lender immediately and determine why the lender feels you're a greater credit risk...and then fix it, if it's fixable. It could be as simple as giving them updated income information.

  • If the lender's answers don't sit well with you, begin interviewing new lenders. Call and request credit card applications. To determine if a credit card lender uses universal review, do this: go to the disclosure form and find the headline "Other APRs," then look for the term "default rate." That should tell you what you need to know. And if you're comparing credit cards you already have, and cannot locate the original application you each lender and ask them for a copy of your application with your current account's terms and disclosures. You need to know your current terms, as they may not be the same as the original offer you received.

  • After you have compiled your list and found a lender that will give you acceptable terms and rates, contact your original lender and tell them you are considering closing the account.

  • Remember, before you begin this cat & mouse game, have a "Plan B" in place. Just make sure "Plan B" doesn't use the same or worse practices as your original lender.

    Just be aware of card tricks. Not all lenders use them (thank God), but be careful of the ones that do. Lenders have lowered the bar on their ethics. It's up to us to read the fine print and play their game.

    About Author

    Stephen Snyder is the founder of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy information and recovery steps. Stephen also writes a free weekly newsletter on bankruptcy recovery.


    Related Posts by Categories

    Widget by Hoctro | Jack Book
    1. 60 comments: Responses to “ What to Do When Your Credit Card Interest Rate Increases ”

    2. By Anonymous on 6:17 PM

      Today, while I was at work, my sister stole my iPad and
      tested to see if it can survive a 40 foot drop, just so she can be a youtube sensation.
      My apple ipad is now destroyed and she has 83 views.

      I know this is completely off topic but I had to share it with someone!

      Review my web blog:
      My web site: home Equity Rates

    3. By Anonymous on 6:24 AM

      Hello There. I found your blog using msn. This is a really well written article.
      I'll make sure to bookmark it and come back to read more of your useful info. Thanks for the post. I'll certainly return.

      my web-site; private krankenversicherung münchen

    4. By Anonymous on 10:24 AM

      Simply want to say your article is as astonishing.
      The clarity in your put up is just excellent and that i can think you're an expert in this subject. Fine together with your permission allow me to grasp your RSS feed to keep up to date with impending post. Thanks a million and please carry on the gratifying work.

      Visit my webpage trotz schufa bestellen
      Also see my site: kredit trotz arbeitslosigkeit und negativer schufa

    5. By Anonymous on 11:11 AM

      Having read this I thought it was very informative. I
      appreciate you taking the time and effort to put this article together.

      I once again find myself spending a lot of time both
      reading and commenting. But so what, it was still
      worth it!

      Here is my webpage - new business ideas for 2010

    6. By Anonymous on 11:16 AM

      Very good blog! Do you have any suggestions for aspiring writers?
      I'm hoping to start my own site soon but I'm a little lost on everything.
      Would you recommend starting with a free platform like Wordpress or go
      for a paid option? There are so many options out there that I'm completely confused .. Any ideas? Appreciate it!

      Also visit my weblog gesetzliche krankenversicherung vergleich

    7. By Anonymous on 1:11 PM

      I read this post fully about the comparison of most recent
      and earlier technologies, it's awesome article.

      Feel free to surf to my web site: business opportunity magazine
      Also see my site - good business to start

    8. By Anonymous on 3:58 PM

      It's really very complex in this full of activity life to listen news on TV, thus I just use the web for that reason, and get the newest news.

      Here is my webpage :: bad credit home loan refinancing

    9. By Anonymous on 4:24 PM

      Hello there, I found your site by the use of Google even as searching for a similar matter, your site came up, it seems great.
      I have bookmarked it in my google bookmarks.
      Hello there, just become aware of your weblog thru
      Google, and found that it is really informative.

      I am going to be careful for brussels. I'll be grateful if you continue this in future. Lots of people will be benefited from your writing. Cheers!

      Here is my page :: affiliate marketplace sites

    10. By Anonymous on 5:25 PM

      It's very simple to find out any matter on web as compared to books, as I found this post at this web page.

      Feel free to visit my web page: free working from home jobs

    11. By Anonymous on 9:18 PM

      Link exchange is nothing else however it is simply placing the
      other person's web site link on your page at appropriate place and other person will also do similar for you.

      Stop by my webpage - home loan with bad credit

    12. By Anonymous on 1:29 PM

      Please let me know if you're looking for a writer for your blog. You have some really good posts and I believe I would be a good asset. If you ever want to take some of the load off, I'd really like to write some material for your
      blog in exchange for a link back to mine. Please blast
      me an e-mail if interested. Many thanks!

      My web-site :: all affiliate programs
      Also see my site > clickbank top products

    13. By Anonymous on 10:15 PM

      Having read this I believed it was very informative. I appreciate you spending some time
      and effort to put this content together. I once again find myself spending a lot of time both
      reading and commenting. But so what, it was still worth it!

      Here is my homepage ... internet marketing and seo

    14. By Anonymous on 3:49 PM

      Wonderful blog! I found it while surfing around on Yahoo News.
      Do you have any suggestions on how to get listed in Yahoo
      News? I've been trying for a while but I never seem to get there! Thank you

      My web blog secured personal loan
      My page > click The up coming web site

    15. By Anonymous on 9:36 PM

      My coder is trying to persuade me to move to .net from PHP.

      I have always disliked the idea because of the costs.

      But he's tryiong none the less. I've been using Movable-type on a
      variety of websites for about a year and am worried about
      switching to another platform. I have heard good things about blogengine.
      net. Is there a way I can transfer all my wordpress posts into it?

      Any kind of help would be greatly appreciated!

      Also visit my website ... Vergleich Gesetzliche Private Krankenversicherung

    16. By Anonymous on 1:26 AM

      Hi, after reading this awesome article i am also happy to share my familiarity here with friends.

      Feel free to visit my web blog ... refinancing mortgage with bad credit

    17. By Anonymous on 4:42 AM

      Plus size women dresses are now available online and there is nothing to shame.

      From promotional proceedings to commercial days out; there
      have never been so numerous cases to acquire exclusive overstated and printed polos shirts.

      Before you decide on your dress, ensure to read this article to find the best
      dress for you than any other girl in the party.

      Here is my web blog - blazer korea
      my page: jual sweater

    18. By Anonymous on 12:20 PM

      I love it when folks get together and share opinions. Great website, keep it up!

      My web page ... Bad credit Refinance auto loans

    19. By Anonymous on 5:33 AM

      When I οгiginally commented I clicked the "Notify me when new comments are added" checkbox and now
      each time a commеnt iѕ аdԁed I get four
      e-mails with the same comment. Is there any way уou can
      гemоve people fгom that servicе?
      Bless уou!

      Here is my blog; ipod touch 4th generation review
      Also see my page: ipod instructions touch

    20. By Anonymous on 5:56 PM

      If you suspect that your child or spouse is talking to someone on
      their cell phone that they shouldn't, it pays to arm yourself with the services of a cell phone reverse phone number lookup service. Do not jump to any conclusions unless the number shows up repeatedly. The smashing attribute about this service is that you can type in any landline phone number and get complete access to a big database of user information.

      Stop by my page: reverse cell phone lookup

    21. By Anonymous on 7:56 PM

      Use adjectives like gnawed, unhygienic, bad that
      would make a difference to you. Of course, just because
      the theory is well known does not mean its right. A lot of
      studies have revealed that approximately 28% to 33%
      of children between the ages of 7 and 10 have the habit of biting their fingernails.

      Feel free to surf to my site: Nail biting

    22. By Anonymous on 8:18 PM

      Stretch marks are formed when fibroblasts are somehow restricted and skin vitality is not ok.

      Later, the skin will come into view smooth as lying down,
      but the dimpling will appear when standing. The best way of dealing
      with cellulite & stretch marks ( is by choosing a treatment option and sticking to it.

      Also visit my website: celluless anti cellulite treatment vacuum system

    23. By Anonymous on 4:18 PM

      Hey there! I just wanted to ask if you ever have any issues
      with hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of hard work due to no data backup.
      Do you have any solutions to protect against

      my website :: kredit f�r selbstst�ndige ohne schufa

    24. By Anonymous on 9:53 PM

      The example of white noise includes the soothing music that
      you listen which has the sound of water flowing or
      wind blowing. Because you will not be ready to command the noise and it will be really difficult for you to focus.

      The noises may seem worse if you are anxious or stressed.

      My blog;

    25. By Anonymous on 11:39 AM

      You аre so interеstіng! I ԁon't believe I have read through a single thing like this before. So good to discover somebody with some original thoughts on this issue. Seriously.. thanks for starting this up. This website is something that is needed on the internet, someone with a bit of originality!

      Feel free to surf to my page ... payday loans

    26. By Anonymous on 7:26 PM

      Hi there, Ӏ founԁ your ωebsite by means оf Google whіlѕt seaгchіng for a ѕimilar mаtter,
      уour site came up, it аppears good. I have bоokmаrked іt іn my google booκmarks.

      I'm now not certain the place you're getting your
      іnformation, but great toрic. I needs to spend a while learning more oг working out more.
      Тhank you for great info I wаs searching for
      thіѕ info for my misѕion.

      Take a look at mу ωeb page: payday loans

    27. By Anonymous on 8:23 PM

      I like the vаluable info you provide in уouг articles.
      I'll bookmark your weblog and check again here regularly. I'm quite ceгtain ӏ'll learn many new stuff right here! Best of luck for the next!

      Feel free to surf to my website - payday loans

    28. By Anonymous on 6:06 AM

      Wow! This blog looks just like my old one! It's on a entirely different subject but it has pretty much the same page layout and design. Outstanding choice of colors!

      Feel free to surf to my web blog ... bed and breakfast in texas

    29. By Anonymous on 6:31 AM

      Wow! At last I got a weblog from where I be able to in fact take helpful data concerning my study and knowledge.

      Look into my web-site bed with storage

    30. By Anonymous on 7:33 AM

      Hi there, You have done a great job. I'll definitely digg it and personally suggest to my friends. I'm sure they'll be benefited from this website.

      Stop by my homepage; california Home mortgage loan

    31. By Anonymous on 4:37 AM

      It's really very complex in this active life to listen news on TV, thus I simply use the web for that purpose, and take the most recent information.

      My web page; exercises to increase vertical leap

    32. By Anonymous on 7:42 AM

      This excellent website certainly has all the
      information I needed about this subject and didn't know who to ask.

      My blog: workouts to increase vertical jump

    33. By Anonymous on 10:56 AM

      What's up, all the time i used to check weblog posts here in the early hours in the break of day, because i like to find out more and more.

      Also visit my homepage: exercises to increase vertical leap

    34. By Anonymous on 8:14 AM

      I create a leave a response whenever I especially enjoy
      a post on a website or if I have something to contribute to the discussion.
      It's a result of the fire communicated in the article I read. And after this post "What to Do When Your Credit Card Interest Rate Increases". I was excited enough to post a comment ;) I do have some questions for you if you tend not to mind. Could it be just me or does it look as if like some of these remarks come across like they are written by brain dead folks? :-P And, if you are writing on other social sites, I would like to keep up with everything new you have to post. Would you make a list all of your social pages like your twitter feed, Facebook page or linkedin profile?

      Here is my weblog - exercises to increase vertical jump

    35. By Anonymous on 12:36 PM

      Howdy! Do you know if they make any plugins
      to help with SEO? I'm trying to get my blog to rank for some targeted keywords but I'm
      not seeing very good gains. If you know of any please share.

      My weblog: apple vacation costa rica

    36. By Anonymous on 5:19 PM

      When I initially commented I clicked the "Notify me when new comments are added" checkbox
      and now each time a comment is added I get several e-mails with the same comment.
      Is there any way you can remove people from that service?

      Appreciate it!

      my web page; Vertical Leap Exercises

    37. By Anonymous on 2:22 AM

      Hey there! Do you know if they make any plugins to protect against hackers?

      I'm kinda paranoid about losing everything I've worked hard on.
      Any recommendations?

      Feel free to surf to my website :: activity Calorie Calculator

    38. By Anonymous on 4:39 PM

      Thanks for sharing your thoughts on jump high sky sports.


      Here is my webpage: the jump manual

    39. By Anonymous on 7:54 PM

      After I initially left a comment I appear to have clicked on the -Notify
      me when new comments are added- checkbox and now every time a comment is added I recieve 4 emails with the exact same comment.
      Perhaps there is a means you are able to remove me from that service?

      Also visit my web page:

    40. By Anonymous on 1:20 AM

      Pretty! This was an incredibly wonderful article.
      Thanks for supplying this information.

      my homepage ... workouts to increase vertical leap

    41. By Anonymous on 5:17 AM

      This page certainly has all of the information and facts I needed about
      this subject and didn't know who to ask.

      Take a look at my homepage ...

    42. By Anonymous on 6:53 AM

      Hey! Someone in my Facebook group shared this site with us so I
      came to check it out. I'm definitely enjoying the information. I'm book-marking and will
      be tweeting this to my followers! Exceptional blog and wonderful design
      and style.

      Also visit my weblog ... workouts to jump higher

    43. By Anonymous on 12:15 AM

      Howdy this is kind of of off topic but I was wanting to know
      if blogs use WYSIWYG editors or if you have to manually code with HTML.

      I'm starting a blog soon but have no coding experience so I wanted to get advice from someone with experience. Any help would be greatly appreciated!

      my weblog; exercises for vertical jump

    44. By Anonymous on 12:43 AM

      Way cool! Some extremely valid points! I appreciate you penning this
      post plus the rest of the website is also very good.

      Also visit my blog post; mexican food restaurants

    45. By Anonymous on 6:16 AM

      Undeniably believe that which you stated. Your favorite reason seemed
      to be on the net the easiest thing to be aware of. I
      say to you, I definitely get annoyed while people consider worries that they plainly do not know about.
      You managed to hit the nail upon the top and defined out the
      whole thing without having side-effects , people could take a signal.
      Will probably be back to get more. Thanks

      Here is my blog post; workouts to increase vertical leap

    46. By Anonymous on 4:03 PM

      Ridiculous story there. What happened after?
      Good luck!

      Look into my homepage - demo.socialengineexpress.Com

    47. By Anonymous on 11:59 AM

      When some one searches for his essential thing,
      so he/she wants to be available that in detail, therefore that thing
      is maintained over here.

      Feel free to visit my homepage

    48. By Anonymous on 2:15 AM

      Sometimes seasons reasons some shoes might[url=][/url]
      temporarily do not need a chance to[url=][/url]
      wear such shoes we must[url=][/url]
      properly put both of them included in the[url=]Christian Louboutin Outlet[/url]
      right spot in to avoid unnecessary damage of shoes[url=]Louis Vuitton Shoes[/url]

      However if the insole can be so bad, it'll require to use a gentle brush and water gently scrub. Must noted that, do not use chemical soaps cleaning, or they will likely increase the risk for insole the top of cloth off.[url=]Prada UK[/url]

    49. By Anonymous on 11:32 AM

      This pаrаgrаph offeгѕ cleaг idеa іn ѕuppoгt of the nеw peoplе of blogging, thаt
      actually hοw to do running a blog.

      my wеbρаge; Same Day Payday Loans

    50. By Anonymous on 1:52 PM

      My brother recommended I might like this blog. He was entirely right.
      This post actually made my day. You can not imagine just how much time I had spent for this information!

      Look into my blog ... masticating juicers

    51. By Anonymous on 3:44 AM

      Really when someone doesn't know then its up to other people that they will help, so here it happens.

      My site: NaturaCleanse Diets

    52. By Anonymous on 5:26 AM

      I tend not to leave a lot of responses, however after
      browsing some of the comments on this page "What to Do When Your Credit Card Interest Rate Increases".
      I actually do have 2 questions for you if it's allright. Could it be simply me or does it look as if like a few of these remarks appear like they are coming from brain dead people? :-P And, if you are writing at additional places, I would like to keep up with anything new you have to post. Would you make a list of every one of all your shared pages like your linkedin profile, Facebook page or twitter feed?

      My page businessfundingsuccessnow.Com

    53. By Anonymous on 5:36 PM

      Hi there! I'm at work surfing around your blog from my new iphone! Just wanted to say I love reading your blog and look forward to all your posts! Carry on the excellent work!

      my weblog ... HTTP://

    54. By Anonymous on 3:37 PM

      Way cool! Some very valid points! I appreciate you penning this post and also the rest of the website is extremely good.

      Feel free to surf to my web blog :: Automated pay days review

    55. By Anonymous on 1:28 PM

      Either way, you should keep in mind that the rates will be
      extraordinarily high. This means that the price of a policy.
      You suggest New Jersey should look to Michigan and
      New York for ideas, and our no-fault option is modeled
      after both. In order to find the combination
      of those factors affects the poor. This is the highest risk policy an affordable
      auto Insurance quote
      company can cover on an individual plan with higher rates.

    56. By Anonymous on 11:34 PM

      Talk about happier times with your ex-how to attract women tips.

      They would go to meet women online and will
      give your self-confidence a great boost.

      Feel free to visit my page :: how to attract beautiful women

    57. By Anonymous on 9:46 PM

      Analysts ρolled by Fact Set expected lower
      adjuѕted earnings of 15 centѕ per sharе in the most comfοrtable, Palm's WebOS and iOS probably equally matched. If it feels good, responds well and delivers the apps that are available there.

      Here is my webpage :: may tinh bang

    58. By Anonymous on 9:17 AM

      Wonderful blog! I found it while searching on Yahoo News.

      Do you have any tips on how to get listed in Yahoo News? I've been trying for a while but I never seem to get there! Appreciate it

      My webpage; mexican restaurants

    59. By Anonymous on 9:52 AM

      You can find out more about credit card debt.
      Most, not all, payday lenders will offer you the loan and evaluate the feasibility of
      the loan is approved with few Can you imagine a situation in which your salary gets paid.
      One has the facility of paying a single monthly payment option and
      can get a loan at the earliest because these handy loans are extremely expensive.
      Consolidate Payday Loans UK is one such stipulation.

      Take a look at my webpage consolidate credit cards

    60. By Anonymous on 4:45 AM

      Hi there mates, good post and fastidious urging commented
      at this place, I am genuinely enjoying by these.

      Feel free to surf to my blog :: Recipes for Juicing

    61. By Anonymous on 5:21 PM

      Great blog here! Also your website loads up very fast!
      What web host are you using? Can I get your affiliate link to your host?
      I wish my site loaded up as fast as yours lol

      My weblog :: juicing wheatgrass

    About Me

    Hai! Odie is here to help YOU get in shape! Bookmark my blog now, and hoping you have a great knowledge from my blog!!

    Want to subscribe?

    Subscribe in a reader.