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Consumer Reports: Credit Card Rate Hikes

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Oct 13, 2009 5:53 pm US/Eastern

Consumer Reports: Credit Card Rate Hikes

PITTSBURGH (KDKA) ― Dr. Carin Vangelder was furious when she opened her credit card bill and found out the interest rate on her MasterCard had suddenly shot up, even though she always paid on time.

"It went up to almost 20 percent and there was no reason. I couldn't imagine why there was a reason," Vangelder said.

A Consumer Reports National Research Center survey found a high rate of credit card complaints. In all, 14 percent had their credit limits lowered recently, 29 percent were hit with new fees or penalties, and 38 percent said their interest rates had been hiked.

After several hours on the phone and threatening to cancel the card, Dr. Vangelder successfully got her interest rate back down to 12 percent.

"Calling up and complaining can be very effective. According to our survey, about half the time people got at least some of what they wanted," Kim Kleman said.

If negotiating doesn't work, look for a card with better terms.

Consumer Reports said you can often find better credit cards from professional organizations, such as teachers' associations, credit unions, and community and regional banks.

"There are now often one-time fees on balance transfers, so before you switch to a new card make sure you check that," Kleman said.

Also check if the new card carries an annual fee. That kind of charge is making an unwelcome comeback.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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