I was contacted by phone to apply for a credit card. The representative discussed a low interest rate and I agreed. However, when I received the credit card, the rate was higher. Can the credit union do that?

Yes, the credit union can call you and offer you a credit card that has an interest rate that will vary depending on your creditworthiness. However, the representative must tell you about the potential for a different rate to apply or you must be able to cancel the card without being charged any fees. 

Generally, the credit union will review your credit report and the information you provide to determine if you meet the criteria for the offer and then will determine the interest rate that will apply to your account.

The representative should have told you either:

• the specific rates that would apply to the account, or 
• the range of rates that could apply, and informed you that the interest rate for which you qualify will depend on your creditworthiness and other factors.

The only exceptions to these requirements are: 

• where you are not required to pay a fee to get or keep the card, or 
• if the account has such a fee, the credit union gives you 30 days after you requested the card to reject the plan.

If you do not want to keep the account because of the interest rate you received, you can contact the credit union and cancel the account.