Good Customers, Bad Interest Rates |
 |
by: Janna Weiss
Are you a good credit card customer with a bad interest rate? Well, you’re not alone. With all the added pressure from record delinquencies, the credit card industry is going through some hard times. These troubles are reflected in the recent increase in penalties, fees, and interest rates. If you’ve been late on a credit card payment – even by one day – you might be suffering from high interest rates. It’s true that credit card companies have always had the right to change your interest rate for any reason, but more customers with good credit are finding their interest rates to be exorbitant. So what can you do about it?
First, know when your credit card payment is due, and pay your balance on or before that date every month. One day of tardiness can cost you big. Be sure to stay below your credit limit. Going over it can also rack up penalty interest. And if you know you need more time to make a payment, call your card company in advance to see if they will give you a time extension.
Look at the small print in your credit card terms and conditions. Interest rates on variable interest cards are falling thanks to the Fed’s recent interest-cutting trend. But some cards might put a limit on how low their interest rates can go. Watch for the phrase “no lower than” in regard to APR. If your card has that qualifier, the interest rate can never go below that number, but it can definitely go higher.
Finally, if your interest rate has skyrocketed for no apparent reason, call your credit card company to see what’s going on. You might have been late on a payment, which could bring on a period of higher “penalty” interest. This is typically six months in duration, but those six months can be painful when your interest rate suddenly jumps from 10% to 30%! You might be able to negotiate a lower rate with your credit card company if you’ve been a good customer in the past. If they won’t agree to drop the interest rate right away, ask them how long you will need to make timely payments before the rate goes back to what it was before. If the company says this will take longer than a year, tell them you’re going to take your business elsewhere – and mean it.
Even though delinquencies and defaults are on the rise, the credit card companies want your business. Moreso if you’ve got a history of timely payments. Be sure that your company is giving you the respect you deserve. Go online and compare credit cards. You might find that you’re not getting the best deal you could get. It’s in your best interest to find a card company that treats you like the valuable customer you are, and it’s in their best interest to keep your business.
|
Did you find this article helpful? |
| 
