Do credit card companies notify you in advance if they plan to increase your interest rate?

Question

I would like to know if they notify you ahead of time to give you a chance to transfer your balance or if they just slip a quick one in and not even tell you they raised your interest rate until you get the statement?

Also, if you know anything about Chase, could you tell me if they are a reputable lender as far as credit cards go?

I am concerned because I purchased a car on a Chase card that was 4.99% until the balance is paid in full. I have paid way ahead of time, about $700-$1000, a month and figure if I keep paying this way, the card will be paid in full by January 1st. Do you think the interest rate will remain the same until I am paid off?

Answer 1

As long as you used a teaser good until the balance is paid off, and you are never late with a payment, that rate for that balance should not change.  Although, your normal rate for new purchases could change at any time.

Just park that card in the back of your wallet so you do not accidentally use it for something else.  Payments go towards lowest interest first, so any other charges at a higher interest rate would be paid off last.

Answer 2

No, they don't.  Most all credit card companies or banks will change your rate without notice and quite often.  As Harry Trueman said, "Want a friend, get a dog" in reference to bankers.  He was quite correct.

Answer 3

Yes, they do. Do not throw away the inserts you get with your credit card bill. The credit card companies have the right to change their terms of service any time. It is called novation. They will notify you with an insert that come with your bill. If you use the card after you  get the insert, you have agreed to the increase.  If you do not use the credit card after you have read the insert, they cannot charge the higher interest.

Of course it is to their advantage. They designed it themselves. Few people ever read those inserts.