Lowering your credit rate would have been almost impossible a year ago, but I just read in Kiplinger’s Personal Finance that some people are receive 0% Balance Transfers again. This was almost unheard of after the market fell out! However, the tight credit reign may be loosening. Here are some of our best tips about lowering your credit card APR’s.
1. Make a phone call- Call your credit card company and see what they will do for you. If you pay on time and have a decent credit score, they will want to keep your business. Negotiating a lower APR is not as tough as it seems. You can explain to the company that you’re considering canceling your account because you don’t want to pay that interest rate. It would be good if you could now your FICO/Credit Score when you call too. Companies like CreditSesame.com are great ways to monitor your credit score.
2. Know your APR– Go into negotations knowing your current APR, and your desired APR. Make sure you have shopped around for other deals too, and know those Introductory APR & terms PLUS the APR after the introductory period. If you know you aren’t going to be able to pay off the balance in the introductory period, you will want to know the normal APR, because that will affect which card you choose.
3. Have other offers ready- Whether you’ve received other offers in the mail, or you want to bluff, be ready to tell your company that you have another offer at ______ % interest, and you want to know if they will match it. If you’re good at bluffing, this may be the time to use that skill! LOL Don’t come out with some outrageous APR, or they may call your bluff!
4. Either Fish or Cut Bait– Sometimes it’s better to just close out your account and go with a new company. If you’re current company isn’t willing to budge, you can start looking for a new card with better rates through companies like creditcard.com. This is a great site, because it lets you sort through cards, their APR’s, reward/cash back incentives, etc. It’s a great way to find a card that meets your needs.
5. Know when it’s time to get credit help. bettercreditstartstoday.com and other sites are there to help. Just make sure you completely understand their terms before you sign-up.
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