By: James Dimmitt
Debt Consolidation And Credit I have three major credit card accounts that I've had for many years. The other night I was reconciling my monthly statements and noticed a large discrepancy in the APR's (annual percentage rate) I was paying on these three accounts.
Intelligent Finance has announced the launch of a new credit card, which offers a low life of balance transfer rate of 4.9% APR.
Check Credit Rating My first card, card "A", has an APR of 8.9%; card "B" has an APR of 9.9%; and card "C" has an APR of 17.9% -Ouch ! I knew I had to see what I could do about this"out of range" interest rate on card "C". So I considered a couple of options.
Business and Personal Credit Card List There are a lot of different types of online business and low interest personal credit cards available today. Some of the major card companies are Chase, Fleet, Capital one, Discover, Bank One, MBNA and Amex. Each of these companies offer very low interest credit cards and some even offer 0 apr (zero percent APR) as an incentive. Since interest rates have dropped over the past few years, there are a lot of companies who offer low interest fixed cards.
Improve Credit Rating One choice would be to transfer or switch the balance on card "C" to a new card with a lower APR. This would be very easy to do since I had received several pre-approved credit card offers earlier in the week. They included "convenience checks" that I could use to payoff that high APR credit card, thereby transferring that balance to a new account.
Unfortunately, credit card companies offering lower typical APRs (Annual Percentage Rate) tend to have stricter credit check systems and are more likely to reject your application. With the uSwitch.com credit card comparison service you can compare the credit cards available that will accept applications from people with poor credit check results (or credit ratings). This will save you the hassle of having your applications rejected, which can also show up as a bad sign in future credit checks.
Credit Online Rating Report I decided against this option however because I didn't really want to add another account to my credit profile. Your credit score, that "magic number" that establishes your credit-worthiness to merchants can be affected negatively by having too many accounts.
Credit Cards You can save as much as a thousand dollars or more each year in lower credit card interest charges by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can and switch to a credit card with a low annual percentage rate (APR). For a modest fee, RAM Research Corp. ( 7714) rate cards. rate cards by accessing "www.ramresearch.com.cardtrack" on the Internet.
Credit Score Rating Scale So instead I decided to contact the issuer of credit card "C" to see what they could do about that 17.9% APR which seemed so out of line with my two other credit card accounts. I reasoned this was the better of the two options before me since I've already established a relationship with this company; a relationship which included many years of on-time payments which reflects positively in my credit profile with the credit bureaus.
And don' If you have a higher credit score, you can generally negotiate a lower interest rate on credit cards. That's why it's always a good idea to check your credit score before applying for a card. If your score is above 600, you may qualify for a lower interest rate. If you have a low credit score or your credit is not well established, you may be turned down for a credit card or be required to get a secured credit card. A secured credit card requires a cash collateral deposit that becomes the credit line for the account. Almost every secured credit card charges an annual fee, and these fees vary, depending on your credit score.
Bad Card Credit Credit People I called the 800 number and talked to a very a nice gentleman. I explained to him the reason for my call; two other credit card issuers offered me a much more reasonable interest rate and so I'd like to see what his company could offer to me.
Free Credit Rating Report I wasn't surprised when he replied that he could lower my current rate from 17.9% to 15.9%. Since the credit card company makes a profit from the interest rate they charge I didn't expect to be offered the best or lowest rate right off the bat. I prepared myself to have to do a little negotiating.
Credit Rating Scale And so I reminded him that my account was in goodstanding and had been for many years now. I had not made any late payments and always made more thanthe minimum payment due.
Bad Credit Rating Again he informed me that the best he could offer was a rate of 15.9% that would be good until August 2003. So now not only was I not feeling like I was getting a very good deal but this new rate would only be a "promotional" rate !
Credit Rating Agency I remained calm and friendly, knowing that yelling at him or telling him what a "lousy" company he worked for would be counterproductive to my end goal - a lower and better APR for this account. I thaned him for his time but told him I didn't feel this was a very good offer.
Credit Rating Canada And then the "magic" happened. He asked if I would like to speak to an account manager and that perhaps they could better assist me. I thanked him for his time and assistance and was then transferred to an account manager.
Bad Credit Mortgage Rating I explained my dilemma to her and reasoned with her that as a good customer I expected a much better rate. She empathized with me and then offered to upgrade my account to their platinum status which carried an APR of 9.9% ! In addition, the platinum card offered many more benefits and had no annual fee. She also assured me that this was a "contract rate" and not a promotional rate. I would keep the same account number so I would not be opening a "new" account but simply upgrading my current account status.
Good Credit Rating Next time you are reconciling your monthly statements take a close look at the various APR's you are paying. If you notice a disparity in the rates you are paying, call your card issuers to negotiate a better rate. My persistence paid off. Be persistent - it can pay off for you too!
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Credit Mortgage Rating Poor © 2005, http://www.yourfreecreditreportnow.com Author: James H. Dimmitt - James is editor of "TO YOUR CREDIT", a free weekly newsletter with tips to help you manage your personal finances. Subscribe today and receive his e-book "IDENTITY THEFT- How To Avoid Becoming the Next Victim!" and other free bonuses by visiting http://www.yourfreecreditreportnow.com
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