Card Sharks on the Attack
From Bankrate.com:
A record number of credit card companies have built “universal default” clauses into their agreements, which allow them to raise your interest rate if you’re late making a payment — even to someone else!
The provision, generally buried in the fine print of your credit card agreement, basically says that if you are more than 30 days late on any payment to anyone, the interest rate on your credit card could shoot up and your credit score may be damaged.
The less sneaky banks send out these announcements in a separate notice, but most include it with all of the other info that comes with your monthly statement, which means you always have to be on the alert. You will usually have about 30 days from the date you receive the notice in your statement to close your account. You can close your account and not pay off the balance, and at least keep the same (sometimes adjustable) interest rate while you’re paying it off.
I’ve been told of instances where the rate has gone from 12% or so to 23%, or more, so don’t get caught napping. If you let the deadline for closing your account pass, you will be stuck with the high rate and no recourse.
Don’t let it happen.
