Friday, January 12, 2007
Reducing your credit card interest rate
Here is some important info I cut and pasted from a great yahoo group I just joined. These people are extremely active and post very regularly. You can find lots of great info just like this by joining their group!
In thecompact@yahoogroups.com, "diana.faust" wrote:
I have used the following technique over and over again throughout the years as a way to pay off credit cards faster: Call and ask your credit co's for a lower interest rate! My friends are always surprised that they will almost always lower it for you! Even a few points off is savings for you, but I treat it as a game to see how low I can get them to go!
Wording is key. Call your credit card companies (all of them; hey, might as well!) and say,
"I have been getting some credit card offers in the mail who want me to switch my balance
to their card. Before I do that, I wanted to find out if you will lower my interest rate.
***What is the lowest interest rate you can give me?**" (**Important to ask it just like this!
It makes them aim lower than they ordinarily would.)
Often they will ask you "What rate is the other company offering?" They are fishing for
info. You can tell them "It's low enough for the next year that I am considering taking it."
(Most of those great offers are below 5% for 6 mos or a yr max. You co. will tell you "that's
just a temporary rate," and you can tell them that you understand that, which is why you
are calling to see how low a rate you guys can offer me.)
Your card doesn't want to lose your business, esp. if you carry a balance (you are their
bread and butter!) So they will almost always offer you a lower interest rate. If they offer
you something very low (5% or less), even for a limited time, take it and say "Thanks!"
However, if they lower it just a few points, don't let them stop there. (Remember, this
whole thing is a game, so in your mind you can treat it like fun: How low can ya go? You
are already being outrageous to ask in the first place; why not push it further?)
The next question is, "Is that the absolute best you can do?" If they say, "Yes," then ask,
"Can I speak to a manager about this? I really don't want to take my business elsewhere."
Generally when the manager comes on the line, they will give you a rate that they won't
budge from. Go ahead and take it! Anything that lowers your interest rate even just a few
points helps you pay off your debt. And you'll feel really smart for asking!
-- Diana, LA, CA
In thecompact@yahoogroups.com, "diana.faust"
I have used the following technique over and over again throughout the years as a way to pay off credit cards faster: Call and ask your credit co's for a lower interest rate! My friends are always surprised that they will almost always lower it for you! Even a few points off is savings for you, but I treat it as a game to see how low I can get them to go!
Wording is key. Call your credit card companies (all of them; hey, might as well!) and say,
"I have been getting some credit card offers in the mail who want me to switch my balance
to their card. Before I do that, I wanted to find out if you will lower my interest rate.
***What is the lowest interest rate you can give me?**" (**Important to ask it just like this!
It makes them aim lower than they ordinarily would.)
Often they will ask you "What rate is the other company offering?" They are fishing for
info. You can tell them "It's low enough for the next year that I am considering taking it."
(Most of those great offers are below 5% for 6 mos or a yr max. You co. will tell you "that's
just a temporary rate," and you can tell them that you understand that, which is why you
are calling to see how low a rate you guys can offer me.)
Your card doesn't want to lose your business, esp. if you carry a balance (you are their
bread and butter!) So they will almost always offer you a lower interest rate. If they offer
you something very low (5% or less), even for a limited time, take it and say "Thanks!"
However, if they lower it just a few points, don't let them stop there. (Remember, this
whole thing is a game, so in your mind you can treat it like fun: How low can ya go? You
are already being outrageous to ask in the first place; why not push it further?)
The next question is, "Is that the absolute best you can do?" If they say, "Yes," then ask,
"Can I speak to a manager about this? I really don't want to take my business elsewhere."
Generally when the manager comes on the line, they will give you a rate that they won't
budge from. Go ahead and take it! Anything that lowers your interest rate even just a few
points helps you pay off your debt. And you'll feel really smart for asking!
-- Diana, LA, CA
# posted by the lifted library @ 7:17 PM 
