Ah, the good old credit card companies, what they do to get a few extra dollars in their pockets sometimes.  If you haven’t heard of the term “rate jacking” yet, let me inform you on how it works. 

Rate jacking is a term used when a credit card company raises your interest rate.  For example, if you have a interest rate of 14% right now, the credit card company can at any time, turn around and make your rate 19%.  When it come to interest rates in this business, every point counts, especially if you are thousands of dollars in debt.

So, what do you do when the credit card company jacks up your rates?

Call up and complain:  If you’re  a long term customer, call up the customer service department and explain your situation.  Tell them that you’re paying your bills off and you’re trying your best to get all of their money back.  Go on to say that with your interest rates being higher, it’s going to be extremely hard to pay it back quicker because of the rates.  Sometimes they will budge and lower it but if they don’t, it’s time to move on.

Find a new credit card:  Frankly, I don’t like doing business with cards that higher my interest rates, I don’t like that kind of behavior at all.  Instead, find a new card that will offer an attractive interest rate on balance transfers.  Transfer your new card to a 0% for 12 months, etc and pay it off as quick as you can.  If you have good enough credit, you shouldn’t have a hard time finding one of these cards.

Just pay the thing off:  If your balance is only a few hundred dollars, I would pay it off as soon as you can and move on with life.  If the credit card companies have none of your money, they can’t charge interest on it, it’s that simple!  If you’re thousands of dollars in debt, you will probably want to use steps 1 and 2.

With the economy like it is today, you’ll find that rate jacking is going to be more common than you think.  The credit card companies have to make money somewhere and it’s most likely going to be with fees and interest rates.  Take a stand, pay off your card or move elsewhere.