Why would my credit card company raise my apr?

What others have said is true. That credit card you're using is not your property. It belongs to the bank, and they have the right to change the terms of its use at any time and for any reason. Its all there in the fine print if you read it.

What you don't understand is the policy of utilization. The banks that issue credit cards determine how much of a financial risk you are based not only on your FICO score but also according to your utilization of credit---not just their credit card but all the other credit accounts you have open. Even if your credit rating is currently good, if you begin to rack up large amounts of debt on one or more credit cards, the banks will routinely pull your credit report to re-assess your debt to income ratio. If they find that the amount of debt you have charged up on these credit accounts is too high they will then view you as a higher credit risk. This is because the deeper into debt you go, the more the chances increase that you may not be able to pay off all that debt and that at any time you may decide to not pay that money back, which results in a loss to the bank.

High utilization, according to FICO, is greater than 30% of your credit limit. If you're the type of credit card user who charges a lot and pays all or nearly all of it off within a single billing cycle, that makes you a low credit risk. If you're the type of user who charges up a high balance on one or more credit cards and you're paying only the minimum payment each month that makes you a higher credit risk. The banks will watch how much you are charging and how you are paying the money back. If they see that you're barely making the minimum payments or that youv'e missed a payment or making late payments, they will assume that you may be having some financial difficulties and they will jack up your interest rates to reflect the increased risk of doing business with you. At worst, they may even close your account. All of these activities will eventually lower your credit rating.

Your best bet would be to transfer this balance to a new no-fee credit card that has a zero percent interest rate and make huge monthly payments to pay the whole balance off in a few months. If you continue to make only small payments you will never pay the card off and once the zero percent period expires, the interest will begin to accrue and you will find yourself back in the same situation you were in before.

Credit is tight right now, and even people with good credit are having to pay higher rates. Use this as a learning experience. Don't use credit cards to pay for anything unless you're sure you will be able to pay off the entire balance in no more than 3 months. It makes more sense to just save the cash to buy what you need because if you get caught in the credit card trap you will only be making yourself poorer and its a very difficult cycle to get out of.

Sounds like your cardholder agreement allows them to change your interest rate at will.

Assuming you do in fact have excellent credit, your best bet might be to start shopping for a new credit card company. Obviously, you would want the best rate you can get on a new account, but even if you get one with just a fantastic rate (no interest is best) on balance transfers, you could transfer the balance and get your existing debt paid off more quickly.

Was it Discover? They tend to have a lower rate during the summer.

Get another credit card, one that offers a low or zero interest rate. Don't buy anything on that card, just transfer your balance and be sure you pay on time every month. The zero percent rates only last a few months, so if you get one of those, mark your calendar and be prepared to transfer again.

Credit Card companies can raise interest rates without having to have a reason. It is printed right there on your Cardholder Agreement. You probably need a magnifying lense to read it.

most all cards work on variable interest... meaning that your rate is effected by what rate your financial instatution is required to pay.. If the money market they barrow from goes up then so does your apr... if it goes down so will your apr... other things that may change would be that they consider you "at risk" meaning that you could potentially default on them so they raise the apr to get you to pay off faster... best advise i can give is pay over min due never be late and try to talk to a supervisor with some sense....

They are within their rights to do that. Your option is to stop using the card and pay off the balance.

cause they could. apply for another card with Better rate and flip the balance and close the account

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