Credit Card Interest Rate

[saversaba08]

Hello,

I am new to this board and relatively new to this country (five years). Off late, I have started to pay attention to the interest rates on my 2 credit cards and saw that one from Bank of America (Visa) has an interest rate of 20.99% Now, I have never carried a balance nor am likely to carry one (pathological aversion to paying interest) so my question is should I call and ask them to lower the rate? Do prospective lenders look at the rate another bank is charging me, when making their credit worthiness decisions? I might add that my credit score is around 750 and I have never been late/delinquent on any of my payments.

Any and all advice is much appreciated. Thanks

saversaba08

[Vapors]

That's a good question. I don't carry any balances either and I know the rates on my cards are high. I pick the card with the best perks (2% cash back on certain purchases, etc). In the past when getting a car loan and house loan, the rates offered were always good so I do not think they hold the rates of other cards against you. But I do not know for certain.

[simpleyme]

when i called discover they would not lower my rate, they said rate does not matter since I do not carry a balance ,well if that's true why don't they just lower my rate to make me happy?

when i posted about this before it seemed that the answers were just not to worry about it ,I just do not like the high rate and feel I deserve better

[Ima saver]

I don't pay attention to my rates either. I took the card that will pay be back 3% on purchases at Home Depot and just pay the entire bill off each month!

[PauletteGoddard]

Now, I have never carried a balance nor am likely to carry one (pathological aversion to paying interest) so my question is should I call and ask them to lower the rate?

What harm can it do to ask?
I asked for a rate reduction on my Bank of America Visa and it shifted from fixed to variable, but the rate was reduced.

On the other hand, the MBNA-now-F.I.A. Visa card I have has kept its rate, despite the three times I politely called to ask.

Your credit record is relatively shorter -- you can get away with applying for a card with a better rate and cancelling the Bank of America Visa. You might not want to, as credit card issuers can change the terms and conditions of the card at will, but it'd be a good idea to bring that to the Customer Service Rep's attention should you call to request a rate reduction.

[vsjhoc]

Originally Posted by simpleyme

when i called discover they would not lower my rate, they said rate does not matter since I do not carry a balance ,well if that's true why don't they just lower my rate to make me happy?

when i posted about this before it seemed that the answers were just not to worry about it ,I just do not like the high rate and feel I deserve better

In the eyes of Discover, they don't care about making you happy because you are what credit card companies call a "deadbeat" -- you pay your bill in full and don't pay any finance charges. They don't make any money on you except for merchant fees.

ETA: To the OP: The credit card companies [theoretically] don't know what interest rate the other ones are charging you. But it's always worth a try to ask them to reduce the interest rate. You have an excellent credit score, so they may accommodate you because they know you have other options.

[simpleyme]

well actually they do not even make merchant fees off of me as I do not like the rate on the card ,so i am worse than a deadbeat and its their fault since they wont lower my rate ;-)
so they send me mail and new cards all the time and i have not used my discover card in over 8 years
I would say i am waaay below deadbeat status LOL

[disneysteve]

I say ignore it. If you never carry a balance, it doesn't matter. I honestly don't know what the rates are on our cards. I got my first CC in 1982 or 83 while in college and have never carried a balance and never plan to. They could raise the rate to 50% and I wouldn't care.

[saversaba08]

Thanks Vapors, SimplyMe, Disneysteve, Vsjhoc, PauletterGoddard, Ima saver for the advice.

This credit card started off in 2002 as a secured one where we had to open a savings a/c with BoA and keep a min of $1K in it at all times(the credit limit on the card was $1K) All this, after both DH and I had checking a/c in BoA with direct deposit. The cherry on the top was an annual fee of $35! Finally, we wisened up after a year and by then we had established a little bit of positive credit with a car loan. So every yearend I would call BoA and ask them to refund the annual fee, touting our other checking and savings accounts with them. A couple of years back, they made it an unsecured card and raised the limit, but the annual fee continued. Now, they have "reviewed" our relationship and payment history and graced us with their World Rewards Americard that is supposed to earn us 2.5% cash back. Essentially, they have shifted the old card to this new one, all the time assuring us that our account will remain the same and thus not effect our credit score. Haven't checked that out...hope they are right.

On the other hand, my Amex Blue is a much more honest card with int rate of 7.99% and the Rewards program from day one.

Thanks friends once again for your insight. I think I will hold off from calling BoA, after all.

[cptacek]

I hope you are not still paying the $35 fee for the World Rewards Americard! And you never use it! If you are still paying, cancel it! You have a great credit score. You can get a better card with both hands tied behind your back.

[vsjhoc]

I never carry a balance either but I always negotiate to lower the APRs on my cards. I have an emergency fund, but you just never know what may happen. I feel better knowing that I have one card with an APR under 8% and no annual fee.

[saversaba08]

Originally Posted by cptacek

I hope you are not still paying the $35 fee for the World Rewards Americard! And you never use it! If you are still paying, cancel it! You have a great credit score. You can get a better card with both hands tied behind your back.

Lord no, haven't paid the annual fee after the first year...got it refunded every December! Now BoA has confirmed that this card has no annual fee and we can earn the bonus 2.5 % cash back as long as we have a "qualifying relationship" with them. We do use this card, primarily for gas purchases. Plus this card has wider overseas acceptance than Amex.

"I never carry a balance either but I always negotiate to lower the APRs on my cards. I have an emergency fund, but you just never know what may happen. I feel better knowing that I have one card with an APR under 8% and no annual fee."

vsjhoc: This was precisely my rationale behind the original question. So I should ask for a lower rate, right?

Thanks

[vsjhoc]

Originally Posted by saversaba08

"I never carry a balance either but I always negotiate to lower the APRs on my cards. I have an emergency fund, but you just never know what may happen. I feel better knowing that I have one card with an APR under 8% and no annual fee."

vsjhoc: This was precisely my rationale behind the original question. So I should ask for a lower rate, right?

Thanks

It costs nothing to try except maybe 5 minutes of your time. The worst that can happen? They say no. Then calmly ask to speak to a supervisor. Sometimes the CSRs don't have the authority to cut APRs. Good luck, and let us know what happens!

[saversaba08]

Well, I called and they listened!!! From the 20.99% variable the rate is down to 12.99% fixed and they increased the credit limit too ! (without my asking for it)

Thanks guys for your advice.

[Ima saver]

That is great!! But just keeping paying it in full every month!

[saversaba08]

Originally Posted by Ima saver

That is great!! But just keeping paying it in full every month!

Oh, absolutely. I have no intentions of carrying a balance, in fact I go to the extreme of making two, sometimes three payments in a billing cycle, to keep the credit utilization ratio down. Online banking comes in really handy for this.

[vsjhoc]

Originally Posted by saversaba08

Well, I called and they listened!!! From the 20.99% variable the rate is down to 12.99% fixed and they increased the credit limit too ! (without my asking for it)

Thanks guys for your advice.

Terrific!!