Can a variable rate loan’s interest rate change based on changes in your credit score during the life of the loan?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a variable rate loan’s interest rate change based on changes in your credit score during the life of the loan?

Asked on March 27, 2012 under Bankruptcy Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

The most direct answer is yes.  But the extent that it can change and how often it can change will depend on the terms and conditions set out in your credit agreement.  A variable interest rate is an incredibly risky venture.  If you are not comfortable with a constantly fluctuating interest rate, you may want to consider switching the loan or note to a fixed rate note.  It may cost a little more on the front end, but it can also give you more stability and protection on the back end.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption