Last updated:
Quick answer
A rate-increase notice usually can’t touch the balance you already owe. The new APR applies only to purchases made more than 14 days after the notice, starting on the effective date, and not at all in your account’s first year.
You can’t “reject” an APR increase (that right covers some fee and term changes), but your old balance is protected anyway — unless your rate is variable, a disclosed promo ended, or you’re more than 60 days late.
This guide includes an APR Increase Calculator. See your 14-day cutoff, which balance is protected, and what the hike costs you.
Three steps to take now
- Step 1. Find the notice date and the effective date.
- Step 2. If you carry a balance, stop new purchases on this card after day 14.
- Step 3. Call to ask for a lower rate — or move the balance.
And here is the part most guides skip: why your minimum payment can still rise on the “protected” balance.
APR Increase Impact Calculator
Enter the dates and amounts from your notice and latest statement. The calculator dates your 14-day cutoff, shows which balance is protected, and estimates what the hike could cost.
Nothing you enter leaves your device, and there are no card number or name fields.
Your result
Fill in the fields and press the button. Your result appears here.
What a Credit Card Rate Increase Notice Means
A rate-increase notice is a change-in-terms notice: your issuer must send it in writing at least 45 days before a significant change takes effect, including an APR increase or a penalty-rate increase (12 CFR § 1026.9(c)(2), (g)).
The notice must tell you:
- The effective date of the change.
- Which balances the increased rate will apply to.
- Which balances keep the current rate.
- Up to four principal reasons for an APR increase, in order of importance. If a late or returned payment on that account is one of them, the notice must say so specifically.
Credit limits are a different change with their own questions; see what to do when a credit limit is lowered without warning.
The timeline
Notice date.
Your issuer sends the written notice. Everything you owe now is protected unless an exception applies.
Day 14 — last day for old-rate purchases.
Purchases through this date can’t be charged the new rate.
Day 45 — effective date.
Earliest date the change can take effect. The new APR starts on purchases made after day 14.
Month 6 — review.
About six months after the increase, your issuer must begin reviewing it, and at least every six months after that.
| Day | What happens |
|---|---|
| Notice date | Your issuer sends the written notice. Everything you owe now is protected unless an exception applies. |
| Day 14 (last old-rate purchases) | Purchases through this date can’t be charged the new rate. |
| Day 45 (effective date) | Earliest date the change can take effect. The new APR starts on purchases made after day 14. |
| Month 6 (review) | About six months after the increase, your issuer must begin reviewing it, and at least every six months after that. |
Which Balances Keep Your Old APR?
Usually, the balance you owed on the notice date and any purchases made through day 14 keep your old APR; purchases after day 14 can get the new rate, but only starting on the effective date.
PROTECTED
Your existing balance, purchases through day 14, and an account in its first year.
EXPOSED
Purchases after day 14, variable-rate index moves, and the end of a disclosed promotional period.
AT RISK
More than 60 days late: the new rate can reach all balances.
Your old balance keeps the old rate — usually
Under 12 CFR § 1026.55, issuers generally can’t raise an APR on what you already owe. The exceptions are in the table below.
| Balance or situation | Tier | Rule |
|---|---|---|
| Balance you owed on the notice date | PROTECTED | Keeps the old APR unless an exception below applies. |
| Purchases within 14 days after the notice | PROTECTED | An advance-notice increase can’t apply to transactions before or within 14 days after the notice. |
| Account in its first year | PROTECTED | No advance-notice increase in year one. |
| Purchases after day 14 | EXPOSED | Can be charged the new APR, starting on the effective date. |
| Variable APR, and the index rose | EXPOSED | Your rate moves with the index, with no advance notice, balance included. |
| Disclosed promo period (6 months or longer) ended | EXPOSED | The rate moves to the one disclosed in advance. |
| Hardship or workout arrangement ended or failed | EXPOSED | The rate described in the arrangement can return without 45 days’ notice. |
| More than 60 days late | AT RISK | After notice, the new rate can apply to all balances. |
The 14-day rule
A rate increase from an advance notice can’t apply to transactions made before the notice or within 14 days after it. Day 14, not day 45, is your real cutoff.
Day 14, not day 45, is your real cutoff
You can’t keep using the card at the old rate for the full 45 days. According to the OCC, only transactions within 14 days of the notice keep the old rate.
There is a timing nuance. The new rate can apply to a purchase you make after day 14, but interest at the new rate can’t start until the effective date.
Example (hypothetical): your notice is dated March 1. Day 14 is March 15, and the earliest effective date is April 15. A purchase on March 20 can be charged the new rate, but only from April 15 on.
Hotel and rental holds
A hold counts as a transaction on the date the actual amount is charged, not the date the hold was placed. A hold placed on day 10 and charged on day 16 is a day-16 transaction, so it can get the new rate.
If you pay your full statement balance every month, you usually have a grace period; see why you can be charged interest after paying your statement balance.
The First-Year Rule
In the first year after an account opens, an issuer generally can’t raise your APR by sending a change-in-terms notice.
The ban also covers any time the account is closed or frozen for new transactions.
The exceptions are:
- A variable rate that rose with its index.
- The end of a disclosed promotional period.
- A payment more than 60 days late.
- The end of a workout or hardship arrangement.
- A few narrow cases, such as the end of a Servicemembers Civil Relief Act benefit.
A product change or upgrade on the same account generally isn’t a new account, so it doesn’t restart the first-year clock. If your issuer treats a change as a new account, your cardholder agreement controls.
When Issuers Can Raise Your Rate Without Notice
There are three situations where your rate can rise with no 45-day notice (12 CFR § 1026.9(c)(2)(v)).
- A variable APR rises because its public index rose. The rate moves with the index automatically.
- A rate rises at the end of a disclosed period of 6 months or longer. This is the usual promotional-rate expiration.
- A disclosed workout or hardship arrangement ends or fails.
Ending a promoted waiver of interest or fees also counts as an increase, so the usual limits apply unless one of these exceptions fits.
Deferred-interest offers behave differently from ordinary promotional rates; see how deferred interest works.
Can You Reject a Credit Card Interest Rate Increase?
No. The right to reject a change in terms does not cover a change in an APR, though it does cover some fee and other term changes.
You can’t reject an APR hike — you don’t need to for your old balance
Your existing balance is already protected by § 1026.55, apart from the exceptions above.
Under § 1026.9(c)(2)(iv)(B) and (h), issuers must disclose a right to reject significant changes, except for:
- A change in an APR.
- A minimum-payment increase.
- CPI-based fee safe-harbor adjustments.
- Certain fee restorations after Servicemembers Civil Relief Act benefits.
- Changes caused by being more than 60 days late.
Why are APRs excluded? As summarized by NAFCU, the Federal Reserve’s 2010 rulemaking found rejection redundant, because existing balances were already protected from rate increases.
An outdated idea you may still read
Older articles say you can reject a rate increase and repay your balance at the old rate over five years. That came from a 2009 proposal. It is outdated for APR increases.
What you can and can’t reject
You can’t reject
- An APR increase
- A minimum-payment increase
- A change caused by being 60+ days late
- CPI-based fee safe-harbor adjustments
You can generally reject
- An annual fee increase
- Other significant changes to terms
| Change | Right to reject? | Source |
|---|---|---|
| APR increase | No | 12 CFR § 1026.9(c)(2)(iv)(B), (h) |
| Annual fee increase | Generally yes | 12 CFR § 1026.9(c)(2)(iv)(B), (h) |
| Minimum payment increase | No | 12 CFR § 1026.9(c)(2)(iv)(B), (h) |
| Change after 60+ days late | No | 12 CFR § 1026.9(c)(2)(iv)(B), (h) |
| Other significant terms | Generally yes | 12 CFR § 1026.9(c)(2)(iv)(B), (h) |
How to reject, and what rejecting does
Notify your issuer before the effective date. The notice gives instructions and a toll-free number.
If you reject, the issuer may not:
- Apply the change to you.
- Charge a fee or treat your account as in default solely because you rejected.
- Require repayment of your balance that is less favorable than the § 1026.55(c)(2) methods (see the next section).
The issuer may suspend or close the card for new use. If you’re more than 60 days late, you have no right to reject. For a fee increase specifically, see credit card annual fees.
Your Minimum Payment Can Still Go Up
Yes. A protected balance keeps its old APR, but the issuer can still change how fast you must pay it down.
Protected doesn’t mean your minimum can’t rise
Under § 1026.55(c), the repayment method for the protected balance must be no less favorable to you than one of these: your prior method, an amortization over at least five years, or a minimum payment percentage no more than twice the prior percentage.
So your minimum payment on the old balance can rise, up to these limits.
| Method (hypothetical $5,000 protected balance) | Monthly payment |
|---|---|
| Old method: 2% of the balance | $100 |
| Up to twice the old percentage: 4% | $200 |
| Five-year payoff at the old 19.99% APR | About $132 |
These protections continue if the account is later closed or transferred, or after a balance transfer to another account at the same issuer (§ 1026.55(d)).
If You’re More Than 60 Days Late
If a payment is more than 60 days late, the issuer can raise your rate on all balances after giving notice, and you have no right to reject it.
The rate can be restored. Make six consecutive on-time minimum payments, starting with the first payment due after the increase. Your issuer must then restore the prior rate on transactions from before the notice or within 14 days of it.
New purchases made after day 14 are not covered by that restoration. They stay at the higher rate until a review lowers it.
For the review timing on a 60-days-late increase, see the next section. To avoid getting there, read our late fee rules, which also explain how late fees and penalty APRs differ.
The Six-Month Review
For most increases that needed a 45-day notice, the issuer must review the rate at least every six months and reduce it as appropriate (12 CFR § 1026.59).
- What it covers: APR increases that required advance notice, whether for credit risk, market conditions, other factors, or a penalty. It does not cover variable-index moves.
- What it requires: a reduction “as appropriate,” within 45 days of finishing the review. It does not have to be a return to your old rate.
- Who benefits: a reduction applies to the balances that got the higher rate and to new transactions.
- 60-days-late increases: the review isn’t required until after the sixth payment due date. If the rate isn’t restored by then, the first review must happen within six months after that.
- When it ends: once the rate returns to its pre-increase level or lower. Charged-off accounts are excluded.
The review is not a promise to restore your old rate. It is still worth asking your issuer when your last review took place.
How to Get Your APR Lowered
Start with a call, then compare hardship options and a balance transfer if the rate stays high.
- Step 1. Call your issuer. Use the phone script in the checklists below, and note the date and the name of the person you speak with.
- Step 2. Ask about hardship. If money is tight, read about credit card hardship programs. A workout can lower your rate, but its end can also bring a higher rate back.
- Step 3. Compare moving the balance. See balance transfer credit cards, no-fee balance transfer cards, balance transfer vs debt consolidation, and debt consolidation loans for bad credit.
- Step 4. Build a payoff plan. See how to pay off credit card debt fast.
What a hike costs
| Exposed balance | Old APR | New APR | Extra interest per month |
|---|---|---|---|
| $5,000 | 19.99% | 29.99% | About $41.67 |
You may also see headlines about a 10% credit card interest cap; our explainer on the 10% interest cap covers where that stands. Today, your notice and cardholder agreement control.
Should You Close the Card?
Closing the card won’t cancel your existing protections, but it can cost you in other ways.
Under § 1026.55(d), the protections continue after the account is closed or transferred to another issuer, and after a balance transfer to another account at the same issuer.
The trade-off is on your credit report. Closing a card lowers your total available credit, which can raise your utilization; read about the credit utilization ratio before you decide.
If you do close it, follow how to cancel a credit card. If your issuer closes it instead, see a credit card closed without notice and a credit limit lowered without warning.
Variable APRs and the Prime Rate
A variable APR is an index plus a margin, so when the index rises your rate rises too, with no letter and no 45-day wait.
Example (hypothetical): an index of 7.00% plus a margin of 13.99% gives a 20.99% APR. If the index rises by 0.25 percentage points, your APR becomes 21.24% on new and existing balances.
Many card agreements use the prime rate as the index, which is why moves in the prime rate can change your rate with no individual notice. Your agreement names the index and the margin.
If an index is discontinued and replaced under the rules, that is another listed exception to the increase limits. For the basics of APRs and daily balances, see how credit card interest works.
If the Issuer Broke the Rules
If your notice or your statement doesn’t match the rules above, document it, ask the issuer to fix it, and file a complaint if it doesn’t.
- Keep everything. Save the letter or email, its date, and your statements from before and after the effective date.
- Check the basics. Was the notice at least 45 days before the effective date? Did the new rate hit your old balance or purchases within 14 days? Is the account within its first year?
- Call and ask for a correction in writing. Use the script in the checklists below.
- File a complaint. You can submit one to the CFPB complaint portal. The OCC’s HelpWithMyBank has answers for customers of national banks.
Checklists: Notice Decoder, Phone Script, and Next Steps
Use these to read your notice line by line, make the call, and stay on track before the effective date.
1. Read your notice — find these lines
Effective date
When the change starts. It should be at least 45 days after the notice date.
New APR, and whether it’s variable
If it’s variable, find the index and the margin.
“Balances to which the new rate applies”
These should be new purchases after day 14, not your old balance.
“Balances that keep the current rate”
Your old balance and purchases through day 14 should appear here.
Reasons (up to four)
Listed in order of importance. A late or returned payment must be named specifically.
Right-to-reject paragraph
It applies to fee or term changes, not the APR.
Toll-free number
Use it to call about the notice or to reject a fee or term change.
| Line on the notice | What to check |
|---|---|
| Effective date | When the change starts. It should be at least 45 days after the notice date. |
| New APR, and whether it’s variable | If it’s variable, find the index and the margin. |
| “Balances to which the new rate applies” | These should be new purchases after day 14, not your old balance. |
| “Balances that keep the current rate” | Your old balance and purchases through day 14 should appear here. |
| Reasons (up to four) | Listed in order of importance. A late or returned payment must be named specifically. |
| Right-to-reject paragraph | It applies to fee or term changes, not the APR. |
| Toll-free number | Use it to call about the notice or to reject a fee or term change. |
2. Phone script
“I received a change-in-terms notice dated [date] raising my APR from [x]% to [y]%. I’ve paid on time for [n] months. Can you keep my current rate, or offer a lower one? If not, are there hardship or retention options? Please confirm what my minimum payment will be on my existing balance.”
3. Before the effective date
- Note your day-14 date.
- If you carry a balance, move recurring charges to another card.
- Compare a balance transfer (see the guides in the lower-APR section above).
- Set autopay so you never reach 60 days late.
- Calendar the six-month review.
4. If the notice broke the rules
- Keep the letter or email and your statements.
- Call the issuer and ask for a written correction.
- File a CFPB complaint if it isn’t fixed.
Frequently Asked Questions
Can a credit card company raise my interest rate without notice?
Only in three cases: a variable rate that rose with its index, the end of a disclosed promotional period of 6 months or longer, or the end of a disclosed workout or hardship arrangement. Otherwise, 45 days’ written notice is required, including after a payment more than 60 days late.
Does a rate increase apply to my current balance?
Usually not. Your balance on the notice date and purchases through day 14 keep the old APR. Exceptions are a variable rate that rose, a disclosed promotional period that ended, and being more than 60 days late.
What is the 14-day rule?
An advance-notice increase can’t apply to transactions made before the notice or within 14 days after it. The new rate can apply to purchases after day 14, but interest at that rate can’t start before the effective date.
Can I keep using my card at the old rate for 45 days?
No. Only transactions within 14 days of the notice keep the old rate, according to the OCC.
Can my APR go up in the first year?
Generally not by a change-in-terms notice. The exceptions are a variable rate rising with its index, a disclosed promotional period ending, a payment more than 60 days late, and the end of a workout arrangement.
Can I reject a credit card interest rate increase?
No. The right to reject does not cover a change in an APR. Your existing balance is protected anyway, apart from the listed exceptions.
Can I reject an annual fee increase?
Generally yes. Notify your issuer before the effective date using the instructions on the notice. The issuer may then suspend or close the card for new use.
What happens if I reject a change?
The issuer can’t apply the change, can’t charge a fee or treat the account as in default solely because you rejected, and can’t require repayment less favorable than the § 1026.55(c)(2) methods. It may suspend or close the card for new use.
Why did my variable APR go up without a letter?
A variable APR is an index plus a margin. When the index rises, so does your rate, and no advance notice is required.
What happens when a 0% promo ends?
The rate moves to the one that was disclosed in advance, as long as the promotional period was at least six months. No 45-day notice is required. Deferred-interest offers work differently.
Can my minimum payment go up on my old balance?
Yes. The issuer may use a repayment method no less favorable to you than one of three: your prior method, a payoff over at least five years, or a minimum percentage up to twice the old one.
What happens if I’m 60 days late?
After notice, the issuer can raise the rate on all balances, and you can’t reject the change. Six consecutive on-time minimum payments can restore the old rate on pre-notice and day-14 balances.
Will my old rate come back after six on-time payments?
For transactions from before the notice and through day 14, yes. New purchases after that stay at the higher rate until a review lowers it.
Does my issuer have to review my rate increase?
For increases that required a 45-day notice, yes. It must review at least every six months and reduce the rate as appropriate. Variable-index moves are not covered.
Does closing my card stop the rate increase?
No. Closing ends new purchases, but your existing balance stays protected and the repayment rules still apply. Closing can also raise your credit utilization.
How do I ask for a lower APR?
Call the number on your statement and use the script above. Mention your on-time history, ask about hardship or retention options, and confirm the minimum payment on your existing balance.
Is a balance transfer worth it after a rate hike?
It depends on the transfer fee, the length of the introductory rate, and the rate after it ends. Run the numbers against what the hike costs you, and read the transfer guides linked above.
Why does the notice list reasons?
The rules require the notice for an APR increase to state up to four principal reasons, in order of importance. If a late or returned payment on the account is one of them, it must be named.
Does a rate increase hurt my credit score?
The APR itself generally isn’t part of how credit scores are calculated. A higher rate can make a balance harder to pay down, though, which can raise your utilization.
Where do I complain if the notice was wrong?
Start with your issuer, then file a complaint with the CFPB. Customers of national banks can also use the OCC’s HelpWithMyBank.
Sources
- 12 CFR § 1026.9 — change-in-terms notices and the right to reject (Cornell LII)
- 12 CFR § 1026.55 — limitations on increasing APRs, fees, and charges (Cornell LII)
- 12 CFR § 1026.59 — reevaluation of rate increases (Cornell LII)
- Ask CFPB — when a card issuer can increase your interest rate
- OCC HelpWithMyBank — rate increase notice and the 14-day rule (reviewed April 2021)
- CFPB complaint portal
Disclaimer: this page is general information, not legal or financial advice. It is based on 12 CFR §§ 1026.9, 1026.55, and 1026.59 and CFPB and OCC guidance as of October 10, 2026. Your notice and cardholder agreement control; contact your issuer with questions about your account.
Daniel Hayes is the founder and sole researcher at AdvoraHQ. He covers U.S. personal finance, insurance, and consumer law — working directly from IRS publications, federal and state statutes, court opinions, and SEC filings rather than secondary summaries. His focus is the gap between what readers think they know and what the source documents actually say. Daniel is not a licensed attorney, CPA, or financial advisor; his articles are educational and not personalized advice. Reach him at Daniel.Hayes@advorahq.com.
