Negotiate Your Way To A Better Credit Card APR
By James Dimmitt
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More Details at: http://www.yourfreecreditreportnow.com
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.
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.
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 c^ard 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.
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.
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.
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.
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.
And
so I reminded him that my account was in good standing and had been for
many years now. I had not made any late payments and always made more
than the minimum payment due.
Again
he told 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 !
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 thanked him for his time but told him I didn't feel this was
a very good offer.
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.
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.
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 and negotiate a better rate. My
persistence paid off. It can pay off for you too !
Keywords: credit cards, consumer information, credit card tips
About
the Author
James Dimmitt, Romeoville, Illinois, USA
http://www.yourfreecreditreportnow.com
James Dimmitt is editor and frequent contributor to the TO YOUR CREDIT
newsletter, a free e-zine from http://www.yourfreecreditreportnow.com.
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