I have flawless credit but due to some unfortunate things, I had to rely on my credit cards and have high balances. I have not been late on any of them or any other credit obligation that I have, in fact I have never been late on any of my payments every. My credit score is still over 700.

Yesterday I found out that Chase has increased the interest rate on my account from 14.24% to to 27.24%!

I called them and they completely refused to reduce my rate by saying that since I am using over 80% of my credit limit, I am a high risk so they can do that.

My question to you guys is, can they legally do that? What can I do to have my interest rate changed back to 14.24%? At this time, I am unable to transfer my balance to another account.

Please HELP!!!

You need to read the disclosures that came with the card when you applied for it. If you dont have them, then you need to get a copy from Chase. Most creditors have something in there saying that the interest rate can change at any time. So, it is possible that you are stuck with this crappy interest rate. I understand personal problems, but your best bet may be to drive the amount on your card down the best you can, and ask them what percentage of your available credit you need to reduce it to in order to restore you 14%. By the way, if you have good credit 14% is high to begin with unless you have a promotional program plan (like air fair reductions or something like that) you should consider another card. Alot of people get cards and have them for many years not realizing that there are better cards out there. Good luck, Im sorry you are having some financial difficulties at the moment... but you will get through it.

Can they do it? Yes.

Is it fair? No. And congress was trying to pass some laws that would prevent credit card companies from raising rates like this. But since they seem to have their priorities set in a different direction, don't expect anything to happen any time soon.

You can't transfer your card to another card, but can you maybe get a new card and get a balance transfer? There are tons of companies offering credit cards, and your 700 credit score should qualify you.

Inform Chase that unless they lower it back down, you will take your business elsewhere.

They did the EXACT same thing to my little sister. They increased her interest rate because they said she had too much outstanding debt. To answer your question, yes, they can legally do that. They have what is called the "universal default clause". Meaning they can raise your interest rate any time they chose for any reason they chose. You can try to fight it but you'll more than likely lose. Your best bet is to try to transfer to another card. My sister is unable to transfer her balances too and at this point is just stuck with that outrageous interest rate. Sorry, but credit cards suck, and Chase especially. Stay away from Chase people.