• Credit cards with high interest rates are costly for the user.Jupiterimages/Photos.com/Getty Images
  
  A credit card interest rate is the percentage of the outstanding balance on the card the cardholder is charged per billing cycle. A high interest rate means the credit is expensive if you don't pay your account in full every month.
  
  

Rates Are Too High

• A common complaint about credit card interest is the percentage charged. The interest percentage is supposed to be determined by the card holder's creditworthiness, as determined by the issuer based on credit score and history. However, a credit card company may charge a customer a higher rate due to a variety of reasons that are not related to the card holder's credit, like to make up for a loss in profit. Higher interest may be charged if the card issuer relies on one credit report and score only, as a considerable variance may occur across the credit scores from the three major credit bureaus.
  
  

Variable Rate Term Hikes

• A credit card with a variable interest rate fluctuates in the interest percentage in accordance with the credit agreement, the rate of inflation and economic conditions at the rate reset. A variable interest rate may be lower than other rates at the time the card is issued, commonly referred to as a "teaser" rate. The hike in the interest rate may be considerable when the rate resets. A credit card company is not legally required to send rate hike notices for variable accounts, as the terms were disclosed in the original credit agreement.
  
  

Rate Higher Than Allowed Under State Law

• A credit card user may be charged a higher interest rate than is allowed under his state of residence laws. The credit card company is legally able to charge the maximum interest rate under the state laws that exist where the company has its headquarters.
  
  

Introductory Interest Rate Expiration

• A fixed interest credit card may come with a low or no interest rate for a set period of time, like six months, known as an "introductory rate." The rate can go up to the maximum allowed once the introductory rate expires, and the card holder does not have to be notified of the rise in interest or given the option to immediately close the account.
  
  

Increase for Late Payments

• Credit card companies may raise the interest on a cardholder to the maximum, or default, rate if the cardholder is more than 60 days late on a payment. The cardholder is entitled to receive his original rate back, but not until he makes six consecutive monthly payments on time.