Joseph Ridout, a spokesman for Consumer Action, an advocacy group, believes the rate increases are banks' attempt to "make up" for ballooning mortgage losses.
"Credit card issuers don't have to follow the same rules as other lenders do," Ridout says. "They can really change terms of your contract as they want."
Borrowers with good credit who aren't getting the benefits of interest-rate reductions should consider changing lenders even though their credit scores may temporarily drop, McBride says. "If you can find a card that cuts your interest rate and helps you (with) debt reduction, it's worth it," he notes.
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