If your credit card company increases your interest rate,the new rate can only be applied to new charges,not to preexisting balances.

Question

​If your credit card company increases your interest rate,the new rate can only be applied to new charges,not to preexisting balances.

Quizplus · Accepted Answer

According to the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009, credit card companies can only apply an increased interest rate to new charges or transactions, not to preexisting balances. This provides some protection for credit cardholders against sudden or drastic rate increases.

​If Your Credit Card Company Increases Your Interest Rate,the New

If Your Credit Card Company Increases Your Interest Rate,the New