When your interest rate increases, you’re given an opt-out period during which you can reject the new, higher interest rate. If you opt-out, the card issuer will allow you to repay the balance at the old interest rate, but will likely close your account, making it impossible for you to continue using it.
You only have a short period of time to opt-out of the new interest rate, so you must act quickly to make sure your opt-out is effective.
A phone opt-out will not be effective. You must opt-out in writing. The creditor won’t send a form, so you have to type up your own letter letting the creditor know that you do not accept the new terms. Here's a Sample Interest Rate Opt-Out Letter you can use.
Send the letter via certified mail with return receipt requested so that you have proof of the letter’s mailing and receipt. You can get a certified mailing label from the post office before mailing the letter and include the 20-digit tracking number on your opt-out letter. This is additional proof that the opt-out letter was indeed mailed and received by the creditor. Make sure to keep a copy of the letter for yourself.
Credit card issuers know that cardholders seldom read billing statement inserts, so they often use this method to notify you of interest rate increases. If you have a habit of throwing away those inserts without reading them, you could miss out on the opportunity to opt-out of the interest rate increase. So, read everything that comes with your credit card statement.
It’s also important to know that creditors aren’t required to notify you for all interest rates. If your rate was increased because of a default or delinquency on your part, the creditor doesn’t have to provide you with a notice or give you the opportunity to opt-out.