Credit Card raising interest for international transaction

[dewillie]

Hi everyone,
This is my first time posting on this site. Great site. I have a question regarding my credit card. Are credit card companies allowed to increase your interest rate just because you made purchases internationally?

Here's the story. Recently, I was in the islands and made a few purchases. I just got my statement for Janurary and saw that my Annual/nominal percentage interest rate increased from 9.99 % in december to 16.990 in January; and my annual percentage on said January statement is shown as 23.14 %. The note on the bottom of my citi credit card statement says that "your card provides the convenience of transacting worldwide wherever visa is accepted. Each purchase you make outside the U.S. is subject to a transaction fee. This will cause your annual percentage rate to exceed the nominal annual Percentage Rate listed on this statement." Can anyone tell me if the credit card company is allowed to do this? I feel like I am being taken advantage of my these credit card companies

[Flexo]

Dewillie,

Unfortunately, credit card companies are within their rights to increase your interest rate for almost any reason they want. If they decide that people who make overseas transactions are riskier than those who do not, they may choose to use that data as an excuse for raising your interest rate, probably in addition to whatever transaction fee they assess for foreign transactions.

You can refuse the accept the change of terms -- you can call the company and let them know. They will deactivate your card so you can't make any new purchases and you'll have the ability to pay off your existing balance at your old rate.