What can I do if my credit card company increased my interest rate?
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When I called they said that a letter had gone out, but I didn't receive one.
jharvey
2 years ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
if you pay off the card in full each month, it doesnt really matter.
if you are paying back only part of the balance each month you should look to switch.
with a good credit rating you can get a 0% balance transfer deal for up to 17 months at the moment, but expect to pay on average 3% for moving the old card debt - this is how the new card company makes its money. you could then repeat this exercise when the 0% rate ends but if you are unlikely to want to keep shifting the card you could look for a deal that offers a fixed % rate for the life of the balance you move across.
although the rate will be around 4-5% as there is no handling charge it will often work out cheaper for longer repayment terms.
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if you are paying back only part of the balance each month you should look to switch.
with a good credit rating you can get a 0% balance transfer deal for up to 17 months at the moment, but expect to pay on average 3% for moving the old card debt - this is how the new card company makes its money. you could then repeat this exercise when the 0% rate ends but if you are unlikely to want to keep shifting the card you could look for a deal that offers a fixed % rate for the life of the balance you move across.
although the rate will be around 4-5% as there is no handling charge it will often work out cheaper for longer repayment terms.