How to get a lower interest rate on your Credit Card

[happyslob]

Hi all,

I found this link and bookmarked it, because it tells you exactly WHAT to say to your credit card company in order to get a reduced interest rate on your credit card. This isn't my site at all - just a very useful link I think a lot of people will benefit by:

http://www.moneyproblems.ca/LowerCreditCardInterest.htm

I'm working VERY hard on getting my own finances under control, and reducing the interest on my credit card is one step I'm going to be taking.

Anyone have any other tips on how to get a lower interest credit card?

Thanks,
Christina

[funnyvalentine]

I simply called my credit card company, told them that I could transfer the balance to another card (I think it is important to tell them a specific company) and waited. All but one lowered my rates, and I bailed on that one.

[happyslob]

Pretty easy, huh? It's funny that a lot of people just don't bother.

Do you think this depends on your credit rating too, almost like applying for a credit card all over again?

Christina

[geojen]

How low have you gotten a company to go. My DH pays 11% on a card, and we don't carry a balance, but we might have to someday. He has had the card 5 years and has a great credit score. Do you think they'd lower it below 10%?

[happyslob]

Hey Jen,

I think they would, especially if his credit score is so great. Give it a try!

Christina

I paid mine off and the effective rate dropped to 0%!


No phone call required.

[greedy4chips]

Originally Posted by geojen

How low have you gotten a company to go. My DH pays 11% on a card, and we don't carry a balance, but we might have to someday. He has had the card 5 years and has a great credit score. Do you think they'd lower it below 10%?

I think you can get it to 2.9 - 4.9% just by asking. If in 5 years you have never carried a balance (paid no interest) they will be very willing to lower your rate. If not, just request another CC from another all those offers you get. Do not close your current CC account, since your credit score relies on your good payment history with this card (5 yrs worth).

Too many people close outstanding CCs and this adversely affects their credit score.

If you ever do need to carry a balance, request a 0% balance transfer CC offer with no transfer fees, but pay it off quickly!

[gotalkmoney]

Sometimes I'll just stop using the card and sooner or later, I'll recieve letters stating that my interest rate has dropped for 6 months or I can get 0% for 6 months, blah blah.

So, sometimes it doesn't hurt to use another card for a while

[JasonEngler]

This tactic was successful for me also. I contacted three companies and all of them were willing to reduce my rate approximately 2-4%!

Thanks!

Jason

[CHUBROCK]

They have many articles at Debtsmart.com regarding this topic. It is just another website that I use. Hope this helps

[Dr. Sach]

A great book on ways to reduce all kinds of debt!

[happyslob]

Rex - Very clever! I'm working toward that too, but sadly don't have the funds to pay it all off in one fell swoop.

Christina

PS. If you really MUST pay off my credit card for me, then I suppose I won't complain. hehe

[Ima saver]

I don't pay attention to the rates anymore since I pay them off every month. I just want the 1% cash that I get back when I use the card.

[CHUBROCK]

I just transferred all of my outstatnding cc debt to one credit card that is giving me 0% for 18 months. I should be able to pay off the entire balance before the intro rate is over!

After that, I am with Ima. I still use my AMEX Costco card for recurring monthly bills such as newspaper delivery, cable, phone, internet, cell phone...and pay them off so there is not balance. Last year, doing this netted us over $200 to use at Costco! Not too shabby.

[sweeps]

Originally Posted by CHUBROCK

I still use my AMEX Costco card for recurring monthly bills such as newspaper delivery, cable, phone, internet, cell phone...and pay them off so there is not balance. Last year, doing this netted us over $200 to use at Costco! Not too shabby.

This is good, but not ideal. The reason is your 1% reward must go to Costco purchases. You can't get cash like many other cards offer. Also since you're applying the rebate to Costco purchases, those purchases don't get another 1% rebate applied (because you used the rebate check, not the credit card).

I DO use my Costco AMEX at restaurants though (in addition to Costco purchases). 3% is a good deal.

[CHUBROCK]

Originally Posted by Sweepsplayer

This is good, but not ideal. The reason is your 1% reward must go to Costco purchases. You can't get cash like many other cards offer. Also since you're applying the rebate to Costco purchases, those purchases don't get another 1% rebate applied (because you used the rebate check, not the credit card)..

You make a good point here Sweeps. I really don't mind only getting Costco Cash and then not getting another 1% on that purchase. Right now I am just beginning my journey into debt-free living. Within another 2 years, I should be completely debt-free (other than the mortgage). When I get there, I will start really researching these things more and getting the most bang for my buck. Right now, I am happy with my yearly Costco Check.

[Reldon]

Thanks for the advice. I called my CC company and got it lowered by 1.5%.

Thanks

[Ima saver]

i do like getting my rebate in cash! Then I can save it.

[LuxLiving]

Congratulations Reldon!! Keep watching your statements and make sure they keep up w/what they promised you.