Generally speaking, yes, your card issuer can raise your interest rate. However, it cannot do so in the first 12 months after you open the account and it can’t do it without giving you 45 days’ notice, unless:

• The index upon which your variable rate is based has gone up;
• A penalty rate is being applied because your payment is more than 60 days late;
• Your introductory rate (that has been in place for at least six months) is expiring; or
• You haven’t made your agreed upon payments under a workout agreement.

If you close the account before the rate hike takes effect, the issuer may increase your monthly payment so that you pay the balance off in five years. Or it may double the percentage of your balance used to calculate your minimum payment, which will also result in a faster repayment.

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