How Do You Negotiate for 0%?

[jwthornhill]

We are currently paying 0% interest on our American Express Card. But, on 4/24 it is due to jump up to 21%.

Is anyone here familiar with any methods that we can use to extend that period?

Thanks,

NTBDF

[neatdesign]

I highly doubt you'll be able to get anything close to 0% post-intro even if you are successful at negotiating a change -- especially if the post-intro rate is 21%(!). They've given you an interest-free loan for X amount of time thus far, so they have little incentive to continue giving you something for nothing, know what I mean?

You might be better off transferring the balance to a new card with 0%.

~ Jenney

[jwthornhill]

We really appreciate your response. We will try with another card then.

Thanks again.

[Ima saver]

Yes, I would keep transferring the balance.

[abowers]

I'm in a sort of similar position. I opened up a new credit card with 0% for a year to pay off a good chunk of debt I accumulated while a college student, and paid off $1300 in the past 10 months (Not bad considering I make like $12k/year on my grad student income), but still have about $900 to go - the 0% expires this June. (Got engaged in September... getting married this August...so a lot of money started going toward saving for wedding expenses, but still throwing as much as possible toward the credit card on my Graduate Student income...)

I guess I'll be closing this promotional credit card when the 0% period is up in June -- the normal rate is something like prime + 6.74%. = 14.99%? (or higher, not sure if prime is still 8.25)

My main credit card has a rate of 10.99% fixed.

I've been debating whether to open another card with a 0% rate to get me past the wedding, or transferring it to my 10.99% card and sucking up the payments + interest until the balance is gone...

As far as affecting my credit, it's a 703 the last time I checked a few months ago. I already have a car, so there is no need to get a car loan any time soon. We are currently both grad students - I'm done in Spring of '09, He's done with his doctorate in Spring of 2011 -- we aren't even considering buying a house until then, so there's no need to be concerned about another CC affecting my credit in the near future for mortgage purposes.

Any ideas? Thanks.

[myself]

Originally Posted by abowers

I'm in a sort of similar position. I opened up a new credit card with 0% for a year to pay off a good chunk of debt I accumulated while a college student, and paid off $1300 in the past 10 months (Not bad considering I make like $12k/year on my grad student income), but still have about $900 to go - the 0% expires this June. (Got engaged in September... getting married this August...so a lot of money started going toward saving for wedding expenses, but still throwing as much as possible toward the credit card on my Graduate Student income...)

I guess I'll be closing this promotional credit card when the 0% period is up in June -- the normal rate is something like prime + 6.74%. = 14.99%? (or higher, not sure if prime is still 8.25)

My main credit card has a rate of 10.99% fixed.

I've been debating whether to open another card with a 0% rate to get me past the wedding, or transferring it to my 10.99% card and sucking up the payments + interest until the balance is gone...

As far as affecting my credit, it's a 703 the last time I checked a few months ago. I already have a car, so there is no need to get a car loan any time soon. We are currently both grad students - I'm done in Spring of '09, He's done with his doctorate in Spring of 2011 -- we aren't even considering buying a house until then, so there's no need to be concerned about another CC affecting my credit in the near future for mortgage purposes.

Any ideas? Thanks.

Why bother closing the account? The only reason that I ask, is that we often get offers from lenders that we've had for many (ok 7-10) years for low rates.
Our most recent rate is 4.99% fixed until it's paid in full.

Personally, I would open another line of credit at 0% for balance transfer rate, and pay it off in a year (which it seems like you can do, since you paid $1,300 this year).

[corns]

Always make use of 0% intro rate and transfer your balance over. This way you save on interest and all your repayment goes to paying the outstanding balance.

If you can't get another card for 0% interest, then only do you consider asking for a lower rate with your existing card.

[abowers]

Thanks for the feedback!

Paying off the balance within a year will definitely not be a problem -- after this August it will be a breeze since I won't be saving for a wedding any more! (and we're paying for the wedding with cash only, not taking on any debt for it).

Didn't know if I should close the account since it's not important for my credit history (only open for one year) - and didn't want to have too many open.

My main credit card that I've had for several years is 10.99 -- I negotiated that down from something ridiculous like 18 or 19... That's MBNA...turned Bank of America

The one with the 0% now, is an HSBC card. Not sure if there's room for negotiation there as well.

Guess I'll start looking for a 0% card to open up come June! (or end of May).

[wyett3]

Here's the step by step balance tranfer tutorial: [url=http://www.mymoneyblog.com/how-to-make-money-from-0-apr-balance-transfers/[/url]. Their 'technique' seems a little 'a la Enron'. But with a real balance to finance I'd take advabtage of their offer.

[greedy4chips]

Originally Posted by myself

Our most recent rate is 4.99% fixed until it's paid in full.

Many of those offers come with a 3% balance transfer fee, effectively upping the percentage rate to 7.99%, which is still better than your current 10.99%

Here is a clickable version of wyett3's link
How To Make Money From 0% APR Balance Transfers (Index) » My Money Blog - Personal Finance and Investing Blog

[JoyJoy]

Thanks Greedy for posting wyett3's link! Very informative indeed! I especially liked the advice on what to do with cards whose 0% promotions have expired and their balances have been paid in full.