Credit Card Issuers Raise Interest Rates
The San Diego Union-Tribune reports on how US card issuers are raising interest rates when the cardholder is late or misses a payment to another creditor.
How does this happen? Suppose you miss a payment or overlook a bill from your phone company or even a compact disc club, and the company reports it to a credit agency. That credit report is now available to all your creditors, triggering the universal default clause in some credit-card agreements. This allows them to raise your rates, even if you have always paid your bills to that creditor on time.
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