I have three major credit card accounts that I have for many years. The other night I reconcile my monthly statements and noticed a big difference in the APR (annual percentage rate) I pay on these three accounts.
My first card, a card "A" has an APR of 8.9%; map "B" has an APR of 9.9%, and the card "C" has an APR of 17.9%-Ouch! I knew I had to see what I could do about this "elusive" interest rate on the map "C". So I considered
a couple of options.
One option would be to transfer or spend the balance on the card "C" to a new card with a lower APR. It would be very easy to do since I had received several pre-credit card offers earlier in the week. These included "facilitate checks" that I could use to gain high APR credit card, and the balance transfer to a new account.
I decided against this option, but because I did not really want to add another account to my credit profile. Your credit score, that "magic number" which establishes your credit traders may be affected negatively by too many accounts.
So instead I decided to contact the credit card issuer "C" to see what they could do about it 17.9% APR that seemed out of line with my other two accounts credit card. I reasoned it was the best two options before me since I already established a relationship with this society, a relationship that included many years of payments that reflects positively on my credit profile with credit bureaus.
I called the 800 number and spoke to a very fine gentleman. I explained the reason for my call, two other credit card issuers offered me a much more reasonable rate of interest and that is why I would like to see what his company could offer me.
I was not surprised when he replied that he could lower my current rate of 17.9% to 15.9%. Since the credit card company made a profit of interest rates they charge I did not expect to be the best or lowest rates right away the bat. I prepared myself having to do a little negotiating.
And then I reminded him that my account is in good standing and has been for many years now. I had not made any payments in arrears and still more than the minimum payment due.
Again, he informed me that the best he could offer a rate of 15.9% which is well before August 2003. Now, not only was I did not feel like I was making a very good deal, but this new rate would be a "promotion" rate!
I stayed calm and friendly, knowing that yelling at him or tell him what a "bad" company he worked for would-productive against my ultimate goal - a reduction and better APR for this account. I thank him for his time, but told him I did not feel it 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 help me. I thank him for his time and assistance and was then transferred to an account manager.
I explained my problem to her and reasoned with her as a good score I was expecting a rate much better. She empathized with me and then offered to upgrade my account of their status as platinum which has an APR of 9.9%! In addition, the Platinum Card offered more benefits and many had no annual fee. She also assured me that it was a "contract rate" and not a promotion. I would like to keep the same account number if I would not be opening a "new" account, but simply upgrade my current account.
The next time you reconcile your monthly statements carefully consider various APR you pay. If you notice a disparity in the rates you pay, call your card issuers and negotiate a better rate. My
perseverance has paid off. Be persistent - it may bear fruit for you too!
My first card, a card "A" has an APR of 8.9%; map "B" has an APR of 9.9%, and the card "C" has an APR of 17.9%-Ouch! I knew I had to see what I could do about this "elusive" interest rate on the map "C". So I considered
a couple of options.
One option would be to transfer or spend the balance on the card "C" to a new card with a lower APR. It would be very easy to do since I had received several pre-credit card offers earlier in the week. These included "facilitate checks" that I could use to gain high APR credit card, and the balance transfer to a new account.
I decided against this option, but because I did not really want to add another account to my credit profile. Your credit score, that "magic number" which establishes your credit traders may be affected negatively by too many accounts.
So instead I decided to contact the credit card issuer "C" to see what they could do about it 17.9% APR that seemed out of line with my other two accounts credit card. I reasoned it was the best two options before me since I already established a relationship with this society, a relationship that included many years of payments that reflects positively on my credit profile with credit bureaus.
I called the 800 number and spoke to a very fine gentleman. I explained the reason for my call, two other credit card issuers offered me a much more reasonable rate of interest and that is why I would like to see what his company could offer me.
I was not surprised when he replied that he could lower my current rate of 17.9% to 15.9%. Since the credit card company made a profit of interest rates they charge I did not expect to be the best or lowest rates right away the bat. I prepared myself having to do a little negotiating.
And then I reminded him that my account is in good standing and has been for many years now. I had not made any payments in arrears and still more than the minimum payment due.
Again, he informed me that the best he could offer a rate of 15.9% which is well before August 2003. Now, not only was I did not feel like I was making a very good deal, but this new rate would be a "promotion" rate!
I stayed calm and friendly, knowing that yelling at him or tell him what a "bad" company he worked for would-productive against my ultimate goal - a reduction and better APR for this account. I thank him for his time, but told him I did not feel it 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 help me. I thank him for his time and assistance and was then transferred to an account manager.
I explained my problem to her and reasoned with her as a good score I was expecting a rate much better. She empathized with me and then offered to upgrade my account of their status as platinum which has an APR of 9.9%! In addition, the Platinum Card offered more benefits and many had no annual fee. She also assured me that it was a "contract rate" and not a promotion. I would like to keep the same account number if I would not be opening a "new" account, but simply upgrade my current account.
The next time you reconcile your monthly statements carefully consider various APR you pay. If you notice a disparity in the rates you pay, call your card issuers and negotiate a better rate. My
perseverance has paid off. Be persistent - it may bear fruit for you too!
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