|
 |
|
When to Ask for a Better Deal |
 |
by: Janna Weiss
Have you been a loyal card holder for a long time, but still think your fees and interest rates seem high? You're not alone. When the Federal Open Market Committee (FOMC) cut federal fund rates down to 4.75%, stock holders rejoiced.
Card holders, on the other hand, didn't do much of anything. That's because card rates have stayed pretty much the same for the past two years. But that doesn't mean you should settle for inferior terms.
Competition is stiff in the credit card industry, with new cards and new products rolling out all the time. You're actually doing your card company a favor by staying with them. They want to keep you as a customer if you carry a balance, because they want your interest payments.
Other companies want your business just as much. With that in mind, take a look at your situation and decide if it's time to ask for a better deal.
Do you have a strong payment history, but an APR over 12%? If so, it's time to make a call. The average APR at the time of this writing is 14.9%. Good card holders with a history of timely payments deserve a good interest rate.
What if you were issued a card for poor or no credit, and it came with a high interest rate? If you've kept your balance low and made your payments on time for 6 months to a year, give your company a call and ask for better terms.
Some cards start out with a low rate that gets increased after a specified period of time. For now, card companies are only required to give you two weeks' notice when they increase your rates. If your rates have gone up, call them to find out why, and to request a lower rate.
Ultimately, you are going into negotiations from a position of power, because your card company does not want to lose your business. Keep this in mind when you call, but also be patient and courteous. You will be dealing with an actual human being, and that old saying about flies and honey is true.
For tips on specific things to say when asking for better fees, check out our blog entry: 'Stop Paying Credit Card Late Fees and High Interest'.
|
Did you find this article helpful? |
|
|
Credit Card Articles > Fees and Penalties > When to Ask for a Better Deal
|
|
|
 |
|
