Tips on Negotiating for a Low Interest Rate Credit Card
Posted at by ifydcat on category CreditObtaining a low interest rate credit card is not that hard. As a matter of fact, you can even get a low interest rate with the credit cards you own now. All you have to do is ask. Unknown to many, that little plastic card is not only flexible physically. Its interest rates and annual terms are flexible, too. You can easily get a low interest rate with a bit of effort on your part.
First off, research on which credit companies offer a lower interest rate than your present creditor. Let your credit card company know that other companies are offering lower rates, and if they do not lower your rates to match theirs, you will cancel your account right away.
Aside from the interest rates, credit card annual fees can add up significantly to your annual credit charges. Sometimes, this fee is even larger than the monthly accumulated charges. Negotiate with your creditor to reduce, you maybe even get rid of this fee altogether. If you have been making your payments on time and have been a loyal customer for a while, then these will make good arguments in the negotiation process. You can also use your credit score to convince them that you’re qualified for a low interest rate credit card.
In the event that they do not yield to your terms, then maybe it is high time that you consider other credit card companies in your search for a low interest rate credit card. Look for a website that compares and rates different credit card companies like Bankrate.com. Make sure though that you study each agreement carefully. Remember to take note of the fine print.
A low interest rate credit card is just a way of luring clients into acquiring a creditor’s services without considering annual fees, the introductory rate of the offer, and others. Sometimes there are hidden charges that are too much. In some cases, clients find themselves stuck with higher interest rates the following year. Study all of these factors before committing to an account.
Surely, you are aware that you can gain points for shopping, airfares, and many more from credit cards. A credit card with high interest rates and annual fees usually offer better perks like these. If you travel often or use these points to shop more cost effectively, then it would be advisable to keep such an account. Do some computations and see if you can save more with these points as opposed to getting a low interest rate credit card.
In line with this, if you pay your balances in full every month, then a low interest rate credit card would not really matter. You do not pay any interest at all if you keep a little balance on your card every time. Consider the points that a high-interest credit card offers. You might as well stick to that.