High Credit Card Rates Are A Thing Of The Past!

Did you know that the average credit card APR is just above the 18% mark?

You say your rate is higher than that? Well, don’t you think the time has come to change that … to stop giving these rip-off companies your hard-earned money, when there’s a very simple solution to getting a much lower rate? What is that solution, you ask? Calling and asking for a better rate is my answer to that, plain and simple!

WARNING: This is where I get serious: convincing your stinking, no good credit card company to lower your rates will not only reduce the amount you pay on interest each month, but it will also drastically reduce your overall debt. Even if you’re not a very good negotiator, it is still very possible to lower your rates — all that’s required from you is a little research and then a couple of phone calls (too yellow? Then ask a friend, who actually has a pair, to make the call for you. Then get down on yourself for being such a chicken-s#$t [just kidding. Or am I?]).

What you need to know: It’s extremely important to understand some of the key factors that influence the credit card interest rate, so that you can better negotiate a deal when the guy on the other line starts playing dumb, or says, “My hands are tied here!” (note: he’s lying to you). These factors are: 1) the risk of default that you pose to the financial institution, 2) the higher the risk, the higher the credit card interest rate is going to be. Now, understand that by lowering the perceived credit risk to this jerk-off at the credit card company, you can seriously reduce your interest rate (if their front-line man’s just not getting it, ask to speak to someone making more than $7.50 an hour).

This is what you should have learned while researching the subject, before the phone call (you did research right? Oh yea, probably not if you’re in this situation in the first place). Always remember this: they are more than likely going to say “yes” if you meet most (or better yet: all) of the following conditions:

You have a decent credit rating. This means that you are at least trying to get your payments in on time. Slackers, this doesn’t apply to you (what I’m saying is “it’s not going to work”. Go smoke another one).

You do not have a high debt-to-income ratio. You say that you almost never carry a big balance on your credit card? Well, you’re a good candidate then! Have champagne taste on a beer budget? Not so much (good luck with that whole bankruptcy thing)!

You send in just the minimum payment required each month. They love you guys! Sounds backasswards to most people, but to the credit card industry this is their bread and butter customers, for good reasons (if you don’t know what those reasons are, I’m not going to tell you. You’ll find out soon enough, though).

You have an excellent payment record. Again, these people will lavish you with lower rates (they know that if they didn’t, you’re going to consolidate with another company. Man, they hate the consolidation trick).

The credit card is not a sub-prime. This means that your card is for people with bad credit! Don’t worry: if you’re not putting down $500 to get a $500 credit line, you have something different!

To wrap things up: never be afraid (or at least don’t let your type-A buddy be afraid) to demand … I mean it, demand that they give you a better rate! If they stutter (even for a second) or give you some shenanigans, go ahead and tell them that you’ll be cancelling that card after you consolidate, and then see where that sticks (chances are good that they are going to budge, and you’ll get what you want. You’re welcome). Just remember this: before getting started, research the crap out of your options, do a bunch of homework and finally: find out what rates are being offered at this time by the other major creditors. After this, you’ll be prepared for battle!

Once you get out of credit card debt, read my other stuff to find out how to stay that way! Good luck!