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6TH OCT 2008
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Credit Cards – Negotiating a Better Interest Rate
 For the estimated 60% of people who sometimes or always run a balance on their credit cards, there is no more important element than the annual fee. While there are many things to consider when choosing a credit card, none will have as profound an impact on your finances as the interest rate. It is vital for those who carry a balance to choose a card with the lowest possible interest rate.
It is also important to keep track of that interest rate after you have begun to use the card. That is because credit card issuers have the right to raise your interest rate after providing notice, and many credit card issuers routinely review the credit histories of their cardholders. Any negative entry, like a missed payment or late payment, even if not related to your credit card account, can trigger a rate increase. It is a bad idea to assume that the interest rate you agreed to when you accepted the card is still the effective interest rate. The only way to know for sure is to read your monthly statement carefully.
Fortunately, it is often possible to renegotiate the interest rate on the credit cards you hold. This is a little known aspect of the credit card industry, but credit card issuers are often willing to lower the interest rates on their cards to please their customers. It may take several telephone calls to several different customer service representatives and supervisors, but chances are good you will be able to lower your interest rate by at least a point or two.
The reason credit card issuers are willing to lower the interest rate on their credit cards is that there is so much competition in the industry for new accounts. Credit card issuers are very reluctant to allow profitable customers to slip away, and they are often willing to make considerable concessions in order to keep them. Many times credit card issuers are willing to lower interest rates, eliminate annual fees or even refund fees and charges in order to keep their customers coming back.
For more information, visit www.1stcall.com
Provided by The Student Zone (United Kingdom) |
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