Once you've found and been approved for a credit card that suits your lifestyle, you still have to keep an eye on your rate. Even though you've been approved for a card at one rate, it might be subject to change. Even if your card has a fixed rate, it can still change if you break the terms of your contract. While there are many possible ways to violate your contract, or otherwise increase your rate, some seem to occur much more frequently than others.

The most common infraction of credit contracts is delinquent payments. If you're late with a payment, your rate is likely to increase. Some creditors may make an exception. If you contact your credit card merchant before a payment is due, and explain your situation, they might grant an extension to accommodate you, provided it's your first time.

Some people are surprised to find that other debts can increase their credit card rates. Many creditors will penalize you for being late with your payments to other creditors. However, this must be stipulated in the contract.

Another possible reason for an increased rate might have nothing to do with your account at all. If your credit card issuer merges with another entity, the resulting corporation might decide on new rates. In such cases, the receiving entity has the option to alter he conditions of the initial contract, which might entail raising rates.

No matter why your rates are increased, card providers must always offer an explanation that fits the terms of the initial contract. In order to save yourself from any surprises, you should always be familiar with all aspects of your contract before accepting a new credit card.