16 Reasons for Credit Card Interest Rate Increases

Creditors have a slew of reasons for increasing your interest rate. You can usually call to find out why your rate got increased. Based on a 2008 Consumer Action survey, your credit card might have been closed for one of these reasons (note that not all of the reasons are in your control).


1.You were late on your credit card payment.

2.You were late on a payment to another credit card.

3.You got too close to your credit limit.

4.You went over your credit limit.

5.You got too close or went over your credit limit on another card.

6.Your credit score dropped.

7.You have too many credit cards.

8.You have too much debt.

9.Your check bounced.

10.You filed bankruptcy.

11.You gave the bank false information.

12.You fail to adhere to any of the terms in the cardholder agreement.

13.You used the card illegally.

14.You have a variable rate tied to another interest rate that increased (e.g. the Prime Rate).

15.Your credit card issuer’s business strategies changed.

16.Market conditions changed.

If your interest rate increases, you have the option of closing the account and paying off the balance at the old interest rate.

Source: About.com

United We Stand. Divided We Fall.

It grieves me to see the divisiveness of Americans today. It seems to me that people are in only one of two camps on the key issues (e.g., economy, financial, health, education). Left and Right with virtually nobody inbetween. The dialog is beyond negative, beyond civil, beyond simple party lines. Sheer hatred stands between the two sides. Possibly the rhetoric is more obvious in Texas where President Obama is virtually non-supported except for minority voters. However, the arguments on CNN - which is supposed to reflect national opinions - are violent, too.

I have heard people who are Civil War afficiandos say that we are more divided than we were before the outbreak of the Civil War.

Example: there is a woman in one of my exercise classes whose husband is so sick that he could die at any time. But they've had him through so many tests - all inconclusive - and can no longer afford the ones recommended now. He's in his 50s. He is weak and struggling. But because their insurance co-pays are 20%, they have added up to such a huge amount that they are insurmountable. They have worked out payments with the doctors, radiology centers, hospital and other providers. However, they say that it will take more than a decade to pay off the old bills. There is no way to take on new ones. But they lead their friends in opposition to the current health bill proposal. They say that they'd rather have him dead than give in to "socialism."

Until our leaders set the example of positive dialog and compromise, we - the people are all in trouble. According to the Wall Street Journal, 1% of our population makes as much as the bottom 95%. We are used to seeing this type of statistic in 3rd world countries; but not the U.S.

Please send any opinions or comments to info@elwellinc.com. Can this problem - this lack of common ground for communication - be corrected? ~ Ellen

Pay your taxes

Recently, we had to defend a client who had not paid in payroll taxes in a significant amount of time. As long as I've been a Tax Attorney, I never fully believed my dire warnings to clients. Yes, I've done a lot of "Offer and Comprise" transactions with the IRS where we get penalties suspended and some mitigation. But this case was an eye-opener of the way they can play "hardball" when they want to.

If you owe the IRS more than you can pay - through liquidation or income - they will force you to take a bankruptcy. You will still owe tax, though. The amount depends on how well your attorney can negotiate. So to all my clients, I urge you to call me earlier than later if you are in trouble. This will allow us to leverage the best possible deal.

I will answer general questions that come to our website. Or, call me for an appointment.
John