Tip For Lowering Your Credit Card Interest Rate
If you, like most people, carry a credit card balance from month to month, you are probably paying a pretty hefty interest rate. Here's how to lower it -- start getting tough with your credit provider. To get in the mood, think of all your hard-earned cash they've been siphoning off every month at 10%+...
Things have become so competitive in credit card land that the credit providers aren't so quick to let you go if you threaten to cancel your card. So:
1) Note what interest rate you are paying on your current card's balance.
2) Do a little research and find another card that offers 0% balance transfers and no annual fee (here's a good place to start). Then find out what the interest rate will become after the initial (oftentimes, 6-month) period.
3) Mentally prepare yourself for transfering to the new card.
4) Call your current card's customer service department and inform them that you're planning to cancel the card because their interest rate is too high. You'll probably be transferred at that point to an agent whose whole job it is to convince you otherwise.
5) While talking with this agent, be firm -- tell the agent you're planning to leave, but would consider staying if s/he offers you a drop in the interest rate to under the other card's rate. Don't tell them what card it is -- they're armed with reasons why that's a bad card for you, and that's not the conversation you want to have with them . Stay focused on the issue of lowering your current rate.
6) If the agent goes for it, great. If not, great too -- move to the other card. The first one doesn't apparently value your business.
Just one other thing to consider -- cancelling a credit card can effect your FICO credit rating. So all things being equal, it's better to wheedle a good rate out of your existing card provider than make the switch.