A card holder can cause their interest rate to increase if they do any of the following things. Paid late on the credit card balance, wrote a bad check for your credit card payment, maxing out a credit card, not abiding by the set credit card terms, or using the credit card illegally. Some of the listed above actions can have more intense repercussions than others.
If your credit card interest rates are to increase, the credit card company is required to allow 45 days of advanced notice. Within the 45 days the card holder has the right to reject the new credit card interest rate. If rejected, the card holder can pay off the current balance at the lower interest rate. Yet, you will have to close your credit card if the new higher interest rate is rejected.
Credit card companies do not have to inform a card holder of an increased interest rate if it is being raised due to defaulting on your credit card. The lender may be lenient if this is the first late payment. If not, then after six months of timely payments you can call and request the interest rate be lowered to the old rate, credit card companies now have to do this.
So what is the buzz about cash back credit cards, basically they provide free money. Cash back cards are great if you are already using your credit cards for everyday purchases, and you have a decent amount of self control. If you do enough research a card can be found that provides no fees, low APR and 1-5% of free cash on every dollar spent.
Credit cards have a reputation for being safer than debit cards, the make more sense than using cash, and are quite profitable. The advantages to having a credit card can be great if a person just uses self control and is responsible. Then credit scores can be increased and the possibilities in the future also increase.