My credit card company says my APR is going up

This notice

The letter, email, or statement insert may say the annual percentage rate on your account is increasing. It may be titled “Notice of Change in Terms,” “Important changes to your account,” or a penalty rate notice.

A change-in-terms notice usually means the issuer is repricing the account under its card agreement. A penalty rate notice means the issuer says a late payment or other event triggered a higher rate.

Both can raise what you pay. They follow different rules, so read which one you have before you act.

This is not a deferred interest bill or a closed account. If the issuer shut the card, see the related guides below.

Official path

1. Find the effective date, the new APR, and the list of balances the new rate will apply to. Federal rules require the notice to say which balances it covers.
2. Read the reasons. For a credit card rate increase, the notice must list no more than four principal reasons, in order of importance.
3. Count the days. After the first year of an account, the issuer generally must give 45 days of notice. Purchases made more than 14 days after the notice are treated as new transactions.
4. Check whether your existing balance is affected. The CFPB says the issuer generally cannot raise that rate. Exceptions include a variable rate, an expired promotional rate, or a payment over 60 days late.
5. Look for a right to reject in the notice. If it appears, it must give instructions and a toll-free number to use before the effective date. Rejecting may end your ability to make new charges.
6. Ask the issuer in writing to explain the increase and confirm the balances affected if anything on the notice is unclear. Use the secure message tool on your account if one exists, and keep a copy.
7. Request a rate review after the increase. The CFPB says the issuer generally must re-evaluate the rate at least every six months and lower it when the rules require.
8. Submit a complaint through the CFPB complaint page if the issuer applies the higher rate to the wrong balances. Do the same if it will not explain the notice.

The CFPB’s Ask pages and Regulation Z § 1026.9 are the official sources for these steps. They say what the notice must contain and when it must arrive.

One conflict to know about: the CFPB says you can reject many account changes. Regulation Z does not require a right to reject for an APR change. Your notice controls, so read it first.

What people reported

Often helps

• CFPB complaint data tagged “Unexpected increase in interest rate” shows 2,397 complaints in the 90 days before this check. Synchrony, Citibank, and Bread Financial were among the most named companies.
• A December 2024 r/CreditCards thread was titled “Citi bank raised my APR because my credit score is 804.” It shows why the listed reasons matter: they can point to the credit report, not only to late payments.
• Writing down the effective date and the balances covered lets you tell the new rate from the old one on each statement.

Often fails

• The complaint tag calls these increases “unexpected.” That suggests many people missed the notice or did not read the effective date before the rate changed.
• Relying on a phone call alone leaves no written record of the reasons or the rate-review date.

Template

[YOUR FULL NAME]
[YOUR ADDRESS]
[CITY, STATE ZIP]
[DATE]

[CARD ISSUER]
[ADDRESS FOR CUSTOMER SERVICE OR CORRESPONDENCE]

Re: Credit card account ending [LAST 4 DIGITS], notice dated [NOTICE DATE]

To [CARD ISSUER]:

I received a notice dated [NOTICE DATE] saying the annual percentage rate on my account will change to [NEW APR] effective [EFFECTIVE DATE].

Please confirm in writing which balances the new rate applies to and which balances will stay at the current rate. Please also send the principal reasons for the increase listed in the notice, or explain them if they were not included.

After the increase takes effect, please review my rate as required and tell me the date of that review. If you believe I have a right to reject this change, please explain how to do that before the effective date.

I enclosed a copy of the notice. Please reply in writing.

Sincerely,
[YOUR FULL NAME]

Enclosure: Notice dated [NOTICE DATE]

Stop here if…

• The notice or a later statement mentions a lawsuit, collection, or court papers; follow the court deadline and speak with a lawyer.
• The reasons cite an account or inquiry you do not recognize; use the issuer’s fraud process and IdentityTheft.gov.
• You have a billing error on a charge; send a separate written billing-error notice within the federal 60-day window.
• The issuer says the account is closed; see the closed-account guide below and keep paying any balance.

FAQ

Can my card company raise the rate on my existing balance?

Generally not. The CFPB lists exceptions: a promotional rate of at least six months that ends, a variable rate tied to an index, a minimum payment more than 60 days late, a workout plan that was not followed, or expired Servicemembers Civil Relief Act protection.

Does the notice have to explain why my rate went up?

For a credit card rate increase, Regulation Z says the notice must list no more than four principal reasons, in order of importance. If yours lists none, ask the issuer for the reasons in writing.

Can I reject the new rate?

Not always. The CFPB says you can reject many changes. Regulation Z does not require a right to reject for a change in the APR. Your notice will say whether you have that right and how to use it.

Will the rate ever come back down?

The CFPB says an issuer that raised your rate after 45 days of notice must generally review it at least every six months. If a payment more than 60 days late caused it, six on-time minimum payments can restore the old rate.