If I miss a credit card payment and my interest rate increases, will it be high forever?

Last Updated: May 24, 2013 08:43PM UTC

Under the CARD Act, which took effect in August 2010, your creditor can increase the APR on your future purchases for any reason, but they cannot increase the APR on your existing balance until your account becomes 60 or more days delinquent. (You have the right to refuse that increased interest rate on future purchases and close the account, but you must pay the balance you owe).

After you have made six months of on time payments following the late one, you can write to your credit card issuer requesting a reduction of the rate, but at the end of the day, it’s in their court because you missed a payment. By law, the card issuer must evaluate and respond to the request within 45 days.

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