CC transfers

I don't have credit cards but saw something on the net which I found baffling.
This person is 60 grand in CC debt with a 31% interest.
Obviously when one gets an interest rate that high they must be considered a high risk by the CC Co.
So this person says they are going to call the CC Co and demand a lower interest rate or they will threaten to transfer the balance. What are the chances they will get anything lower?
Won't the other CC Co's see the person as a high risk too?
Just curious...

[Bluezy]

Re: CC transfers

Quite a feat but not beyond some people to get themselves into. reading those numbers almost made my heart stop, and it will definately red flag this person from finding a lower rate.

This high rate could be a universal default rate. Being late with payment on another account can cause all open charge account interest rates to hit the ozone.

Re: CC transfers

Quite a feat but not beyond some people to get themselves into. reading those numbers almost made my heart stop, and it will definately red flag this person from finding a lower rate.

This high rate could be a universal default rate. Being late with payment on another account can cause all open charge account interest rates to hit the ozone.

~~~~~~~~~~~~
I know what you mean about heart stopping. This person said they make 40 thousand a year and have a spouse who doesn't work and children.

[sweeps]

Re: CC transfers

I don't have credit cards but saw something on the net which I found baffling.
This person is 60 grand in CC debt with a 31% interest.
Obviously when one gets an interest rate that high they must be considered a high risk by the CC Co.
So this person says they are going to call the CC Co and demand a lower interest rate or they will threaten to transfer the balance. What are the chances they will get anything lower?
Won't the other CC Co's see the person as a high risk too?
Just curious...

Maybe they'll take their debt to prosper.com.

[debtdude]

Re: CC transfers

The bank might just say "you are a high risk to us so GO!" They would be wiser to ask for a freeze on their credit card account. This way, the credit card company will turn their account into a fixed rate/fixed period loan so they can make payments on it like a normal loan. They could probably also ask for a lower rate when doing so - if that doesn't get them a lower rate anyway. Another option they have to close the cc account and transfer it to a home loan. This is a secondary loan - not a refinance with their mortgage.

Never threaten a lender.

I did talk with a cc company and said "you had me at the 0% rate which has expired and is now going to 3.7. I have a cc with company xyz and they have a transfer rate of 2.99. Can you match that? " Surprisingly, they said no...so I tranfered the funds to the other company. I'm not high-risk and the amount wasn't high and my payments were on time. Oh well. Their loss and I saved a few points.

Re: CC transfers

[QUOTE=debtdude]The bank might just say "you are a high risk to us so GO!"

~~~~~~~~~~~~~~~~
I thought banks/CC co's liked high risk people ( hee ! hee! )
As long as they stay and make all those minimum payments that only pay down a small portion of their balance the banks are making out like bandit$!

[cbmeeks]

Re: CC transfers

I tried doing that with American Express. They are charging me 17.74% and I called and told them I had an offer for a lower rate (I told them 9%)....I was bluffing.

They didn't care. They said they won't budge. The probably knew I was bluffing. I probably shouldn't have told them I got 9% because they probably knew that I couldn't possible get that rate.