Credit Card issuers switching to variable rates.

Most credit card issuers can raise your interest rates whenever they want (sometimes they agree to hold a rate steady for at least a period of time, especially with introductory offers). But in order to raise your interest rate they have to send you a letter, giving you a chance to think about it and, maybe, do something!

So credit card companies are switching to variable rates, which allow them to raise the rate without notice. If they are lucky, maybe you won’t notice either!

The Wall Street Journal reports that nearly two thirds of all cards carry variable rates, up from about 55% a year ago, according to bankrate.com.

Borrowing on your credit card is probably the most costly (legal) way to borrow money, and if you can avoid it, or have some other way to borrow (such as a home equity line of credit) we advise you to do those things.

If you must borrow on your credit card, then look for low rates (some cards are offering zero percent introductory rates on transferred balances) and be prepated to switch when any card sticks it to you with higher rates.

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