Can the bank raise my credit card interest rate?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
An issuer can adjust your rate only within the BSP ceiling of 3% per month (36% per year) set by BSP Circular 1165 (2023) — it can never exceed that cap. Under BSP credit-card rules, the issuer must give you advance written notice (the BSP requires at least 90 days) before changing how it computes your outstanding balance or the fees it imposes, so a rate change cannot be applied silently. If a higher rate appears on your statement without that notice, dispute it in writing and escalate to the BSP.
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Frequently asked
Is there a hard ceiling they can't cross?
Yes — 3% per month (36% per year) on the unpaid balance under BSP Circular 1165 (2023). No credit-card finance charge may exceed the current BSP ceiling regardless of what the contract says.
Do they have to warn me before raising the rate?
Yes. BSP credit-card rules require advance written notice (at least 90 days) before an issuer changes how it computes your outstanding balance or the fees imposed. A change applied without that notice is contestable.
Can I refuse the increase?
You cannot force the issuer to keep an old rate, but you can stop new charges and cancel the card (see /answer/how-do-i-cancel-a-credit-card-in-the-philippines). Settle the balance under the terms disclosed to you before the change took effect where applicable.
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Your rights as a credit-card holder — the BSP interest-rate cap, how interest and fees are computed, the minimum-payment trap, raising rates, cancelling a card, collection harassment, credit reporting (CIC), and why unpaid card debt is civil, not criminal (you cannot be jailed for it).