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A credit card with high interest rate is bleeding you white, and you
find that there are other credit card offers with significantly lower
interest rates. You simply want your credit card company to lower the interest
rates, but how to approach them? Here is a 3 step proactive approach that
will solve this problem. Step 1: Get a clear picture of the interest
rates you are currently paying
If you have only one credit card, it won't be difficult. But, having a pocket
full of credit card will take a little effort on your part to tabulate
corresponding interest rates. Mark the credit cards which cost you a lot in
terms of APR and other fees. Also, note which one of your low interest rate
credit cards allow balance transfers. Note down the contact information of every
credit card you hold and move to the next step in the process.
Step 2: Contact the credit card agency to lower the interest rates
As the second step, call the high interest rate credit card provider and tell
them, how good your relations are with the credit card company, you have been
their customer for so long, have been prompt on repayments and the credit rating
is also good ( don't make false claims, only tell what is correct, since the
credit card companies will have all the details and can verify anytime.) so,
they should lower the interest rate on their credit card. As, a small leverage
you can tell them that a credit card with the same rewards and offers are
providing a low interest rates and it would be better if the currently high
interest charging credit card matches the rate. Ok, now you have done your part
and its the turn of credit card company to move things now. If you have a good
reputation with them, they will certainly like to keep you as their client. If,
they offer a new low rate, make sure that it is permanent not temporary and get
the offer of lower interest rate documented. If for some reason, the credit card
company doesn't heed to your request, there is nothing to worry. Move on to step
three.
Step 3: Transfer the balances if they don't Remember, in step 1
we talked about keeping account of credit cards with low interest rates, which
allow balance transfer, they come into picture here. If you have such cards,
contact their issuing agencies and ask them about balance transfer fees and
other charges and are they willing to transfer balances from your existing high
interest rate credit card. If you don't have any such low interest rate credit
card, which offers balance transfer, by all means search for one that provides
attractive balance transfer rates and a 0% Intro APR for the longest period.
This will keep the interest rates on the lower side. Now, transfer your high
interest rate balances to this credit card, and close the high interest credit
card account. The money you will save on interest rates can be used for other
things to improve your financial condition.
Remember, proactivity always pays, credit card companies don't lower interest
rates on their own. They have to be told to do so, and if you have valid reasons
and good credit history to support you, you can always get a bargain, otherwise
there is always the option of balance transfer.
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