A card issuer’s rate hike applies only to purchases made more than 14 days after its notice, and it can’t touch the balance you already owe unless you fall more than 60 days behind. If you carry a balance, shift new spending to a lower-rate card. If you pay in full monthly, keep using the card.
The hike arrives as a change-in-terms notice, with the new rate set out in a table that makes your whole balance look repriced. Federal rules limit what the hike can reach and what the notice must tell you.
Under the Credit CARD Act of 2009 and its rules, your issuer must send that notice at least 45 days before the new rate takes effect. Purchases you make in the first 14 days still count as old balance. The hike can reach that old balance only if you fall more than 60 days behind. The rate on it can still rise when a promotional rate ends on schedule or a variable rate rises with the benchmark it’s tied to, and neither needs a notice.
The rules don’t give you a right to reject the rate hike itself. Other protections still apply. Payments above the minimum go to your highest-rate balance first, over-limit fees need your opt-in, and each statement must go out at least 21 days before its due date.
Check the notice for the date the new rate starts and the balances it will cover. The issuer must list both, plus up to four reasons for the hike. If the same notice raises a fee, such as the annual fee, you can reject that change before the effective date by calling the toll-free number it lists. Rejecting can close the card to new charges, but the issuer can’t charge you a fee for it or count it as a default.
If you carry a balance on the card, put new purchases on a lower-rate card and keep paying the old balance down at its old rate.
If you pay in full every month and never see an interest charge, the new rate costs you nothing. Closing the card would shrink your available credit, which can lower your score, so keep it open and keep using it.
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