Credit card interest rates are important, especially when you're the type of cardholder to carry your credit card balances rather than pay them in full each month. Your credit card issuer can increase your interest rate, usually "any time for any reason" if your card agreement allows for universal default. Fortunately, new credit card rules will limit the times banks can increase your interest rate.
The Truth in Lending Act, a Federal law that protects consumers against lenders, requires banks to give 15 days advance notice before increasing your credit card interest rate. During this 15-day window, you'll have the opportunity to opt-out of the changes if you don't accept them. If you choose to opt-out, the creditor will likely close your account, but allow you to repay the balance at the lower interest rate.
Credit card issuers don't always have to notify you before increasing your interest rate. If the rate increase is due to a delinquency or default, the creditor doesn't have to warn you of a rate increase. Typically, these penalty increases are outlined in the fine print of your credit card agreement. For example, if you make a late payment, even on another credit card, your creditor could increase your interest rate without letting you know in advance or giving you a chance to opt-out.
