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[04:17:17 AM Monday, November 17, 2008]
Get Credit Card Interest Rate Lowered TodayIn the past few months credit cards became more costly to use despite the Fed's recent reduction in prime rate. Not only American consumers are facing the higher rates and more fees. The credit crunch is affecting other countries besides the United States. The UK financial information service Moneyfacts reveals a research results showing at least 10% of bank cards increased interest rates and fees. The average interest rate estimated at 16.8% rose up to 17.2% since August, 2008. In America, 50% of consumer spending is still done through credit cards but the rising interest rates are keeping people in a "closed disk" of debt and forcing them to seek financing alternatives. Those who don't want to switch to cash consider speaking to their bank and ask them to lower their interest rate. Getting a credit card best rate is not that easy today. You have to either pay balances in full each month or become a credit card rate tart to avoid paying huge interest charges. The well-known practice of calling directly the bank and negotiating a better rate with them may still be effective if you are firm of your request and aware of all options. If you're going to get the interest rate lowered, there's no point speaking to the operator. Try to get a supervisor to speak to when making a call to the bank. This is the first step to and a more likely chance for a credit card best rate. Then, get armed with those card offers coming in the mail. As the main purpose of card promotion is to get you to apply, they usually carry much better terms and lower fees as an incentive. Remember, you need to negotiate your current deal for a better one, but not to open a new bank account, which may hurt your credit score. But it is not ruled out if the new card application offers a % APR balance transfer and your current issuer is reluctant to meet your needs. Just let your bank know if they do not make the rate more favorable, you can always switch from them and apply for credit card which is less expensive. Negotiating with your bank, act like a credit counselor. A counselor's job is to make a huge debt manageable through arranging with the creditor a lower interest payment. So, tell the bank the exact interest rate you want to pay. Your firmness will assure the lender of the ability to handle monthly bills and whatever extra expenses associated with the card use. You never get a better interest rate than when you pay balances in full each month. In fact, there is no interest on purchases at all if you make use of the grace period lasting 20-25 days depending on a certain card offer. A credit card best rate may still be available through balance transfers application online. But if your balances are too high already, only a debt consolidation loan from a credit union can help. Experience shows you have better chances to get annual fees or over-the-limit fees waived at least once. Of course the bank will not satisfy all its applicants' requests but if you feel your business is important go and make a call now. |
