No one is more adept at keeping consumers confused about what they are paying than banks who issue credit cards. One of the ways they accomplish this feat is to raise interest rates on cards quite frequently and often without a lot of fanfare to notify customers. The new laws in effect will make it more difficult to do but it can, and will, still be done.
The optimal solution for you would be to pay off the card every month. By not keeping a balance on the card at all you would never pay a dime of interest. But that option isn’t viable for everyone. So for those who have good credit but must carry a balance, you don’t have to be sucked into a high interest rate simply because the issuer has increased it.
Businesses are competitive and credit card companies are no exception to this rule. A customer who is intelligent knows that they can leave one issuer for another any second and the bank is aware of this. A good customer with good credit can get a card virtually anywhere. For this reason many companies will be willing to decrease your interest rate with a simple phone call requesting it. A company that wishes to retain your business will be willing to work with you and help you to lower that rate.
But don’t think it will be as easy as it sounds. You want to know a few things prior to the call to be adequately prepared for the conversation that will ensue. It may take a little bit of extra work but you can have a lower interest rate.
You should have all of your information with you before you ever pick up the phone. Your customer service representative is going to try and tell you why it cannot be lowered. If you have your payment history in front of you then they cannot tell you there are late payments that are not there.
It pays to not give up. Sometimes it doesn’t work the first time but that doesn’t mean that a second time around wouldn’t be beneficial. Maybe you will get someone new who is more willing to listen and work with you. They will see you as the persistent person that you are. Never be afraid to ask for the boss. Sometimes that is the key to getting what you need.
The old adage mean what you say comes in handy in this instance. When you tell the issuer that you can leave if they do not lower the rate you should be prepared to do so. You may be left having to prove your word to be true. While issuers who care about your business will likely offer a lower rate in order to retain your business, you may have a company that doesn’t place that value on customers.
If your credit is good then chances are you can even qualify for a 0% APR transfer rate from one of the major card companies. Many companies are offering bonuses to new customers as well. The key is to know the value of your business and to expect the card company you choose to place the same value on it.
Similar Credit Card News:
- [September 6, 2010] Understanding Your Credit Card Rates
- [October 11, 2010] The CARD Act and Your Interest Rate
- [September 14, 2010] New Fees to Expect From Credit Cards
- [January 12, 2011] Why Banks Trying to Reel in Small Business
- [September 10, 2010] Customer Loyalty to Credit Card Companies Drops
- [August 6, 2010] 0% Balance Transfer Cards Become More Popular
- [January 19, 2012] Interest Rates On Consumer Cards Hit A 4 Year High
