Universal Default - The Credit Pros

Credit cards can build or damage credit, depending on their use. The Universal Default policy allows issuers to hike interest rates retroactively, but the 2009 CARD Act imposed restrictions. Issuers must now provide 45 days' notice for rate increases on future purchases and can only apply retroactive increases if payments are 60+ days late, with a chance to revert to the original rate after 6 months of timely payments.