It is possible to renegotiate credit card rates if you have a good credit history and have not missed any payments with your credit card provider. Your odds are greater if your relationship is positive.
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Renegotiating credit card rates is never guaranteed to work, but it is recommended if you meet the criteria because this is a much faster way to pay down your debt.
Balance transfers are an option, but the process can take some time. Working directly with your credit card company can have immediate results, if your outcome is favorable.
Best Ways to Renegotiate
You need to make sure you have accurate records and a few key items before you make contact. You should have a good idea of current credit card interest rates and you should know your recent credit score. Having this information is essential to the success of your negotiation.
Next, check your credit card account statements for the past 12 months. Most can be accessed online. Make sure your payments have been timely and you haven’t assessed any late fees or penalties.
Take your data and reach out to your credit card provider. Explain how your research has led you to inquire about lowering your interest rates, based on current market trends. It can also help your case if you have several active offers from competitors. Your credit card company is well aware of the marketing strategies and will know if the offers you have are legitimate.
As you discuss your account, mention how you want to keep them as your credit card provider, but you feel your responsible financial management abilities should be rewarded.
Beware this may take several attempts as many frontline customer service representatives may not have the authority to make permanent changes. Follow-up with someone in management and make sure you have your new agreement within the timeframe promised.
Understanding Your Credit Score
According to the United States Federal Trade Commission, you are entitled to a free credit report every year. Log onto AnnualCreditReport.com, enter your zip code, and complete the short form. Within seconds, you will have your report. Review carefully and look for any mistakes. Almost 95% of all credit reports are accurate, but you should still confirm.
The trick to understanding your credit score is how it is determined using your credit history and other factors. Most important is the fact that your credit card company cannot view information contained in your personal bank accounts or other records. They use your credit report in conjunction with your score to determine your payment practices and delinquencies. To receive the most favorable outcome, make sure both indicate positive entries.
Types of Annual Percentage Rates
While you are thinking of renegotiating your APR with your credit card company, make sure you review your contract to confirm the type of credit card APR you have. There are two and the differences are vast. Considering the new credit card laws that have passed, the type of APR attached to your credit card may see major changes.
The most common APR credit card companies today are the variable interest rate cards. These types of credit cards are often accompanied by low introductory rates or zero teaser rates. They are only temporary and last between six and 24 months. However, after that period expires, the new, more permanent APR rises tremendously.
Because the variable interest rate credit cards are influenced by economic fluctuations, they can change and can be less stable. However, with the passing of the CARD Act of 2009, interest rates have become much steadier. In addition, the credit card companies can no longer impose exorbitant finance charges, which help tremendously.
Fixed interest rate credit cards can start as low as 6% and are issued upon acceptance of the initial loan amount or credit card limit. There are only a few credit card companies that offer fixed rate credit cards to new customers.
Customers with lengthy credit histories are more likely to have fixed interest rates.
Not everyone will meet the qualifications and have their credit card interest rates renegotiated, but those who are lucky enough to succeed may find their next few payments less expensive. Over time, the balance of this particular credit card will diminish faster and within a short time, you can enjoy having zero debt.
The FREE credit card finder will help you find low interest credit card rates today!
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