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I made a balance transfer using my new credit card. I just received my latest statement and the bank increased the interest rate on the balance transfer. Can they increase my rate?

It depends. Banks generally cannot increase a fixed interest rate on an existing balance, but they can raise the interest rate if any of the following conditions are true:

  • The rate is variable and tied to an index. If the index goes up, the interest rate will also increase.
  • The rate was an introductory interest rate that had been in effect for at least six months and has expired. The length of the introductory period and the annual percentage rate that would apply after the expiration of the introductory rate must have been clearly disclosed in writing.
  • You are more than 60 days late in making a required payment.

Review your account agreement for policies specific to your bank and your account.

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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