You Are Not Trapped in Bad Terms, Even If You Have a Credit Card for Bad Credit
View PDF | Print View
by: barrywaters
Total views: 104
Word Count: 437
The least charming facet of credit cards for bad credit is the high interest rate that almost inevitably comes with them. However, you are not stuck with a high interest rate for life. Whether you have credit cards for bad credit, student cards, store cards, or any other types of credit card that have ridiculously high rates, here is how you can negotiate better credit card terms.
First, try calling the issuer and simply asking for a better interest rate. A national survey found that 56 percent of the time, credit card companies offered lower rates to customers as an incentive to not switch credit card companies if the customers telephoned to say that they had gotten a better offer and were planning to leave. Credit card companies were willing to reduce their annual interest rates by an average of five to six points, and often offered additional incentives like zero percent interest for six months. One customer with an exorbitant interest rate managed to reduce it by more than half, encouraging news if you have a credit card for bad credit. Customers suffered no penalties if their credit card issuer refused to lower their interest rates. As long as you are polite as well as persistent, asking your credit card company to drop your interest rate offers you no risk and an excellent chance for success.
If you pay an annual fee, the same method can convince your credit card issuer to waive it. If you want to change your due date or move to a better rewards program, you do not even need to threaten to leave. Just ask.
You can improve your credit card terms remarkably even if you originally got your card under terms designed for credit cards for bad credit. You may even be able to get a deal equal to those enjoyed by premium credit cards. This is especially likely if you have had your credit card for a while (two or three years on average; four years or more is ideal), if you have made most of your payments on time for the past year or two, and if you are using a relatively small percentage of your line of credit. However, even if you have had your credit card for only a year, are using much of your credit line, or have made a late payment or two, you may still be able to talk the company into giving you some improvements. A little civil persistence can do wonders for your credit card terms. It cannot hurt to ask.
About the Author
Research on credit cards, visit www.getsmart.com/credit-cards.
Rating: Not yet rated