An old proverb states that you have not because you ask not. No where is this more true than in the banking industry. Banks and Financial Institutions are businesses that have to make a profit. If a client is willing to settle for a certain interest rate instead of asking for a better one, they will give them the higher rate. If you want a lower credit card interest rate, ask for it.
If you call your credit card company and ask for a lower interest rate, 80 percent of the time they will say yes. There is too much competition in the market place and credit card companies need their customers, especially the good customers and in order to keep them they will give them what they ask for. When it comes to a choice between making a little less profit or making none at all--many credit card companies will choose the latter, giving you lower credit card interest rather than risk losing you to another company that will.
Of course, customers who have historically paid what they are supposed to when they were supposed to are most likely to get their interest rates cut, and cut lower, just for asking for the reduction compared to someone who consistently pays the minimum or misses the payments altogether or who frequently calls to complain about items on their bill. If you are a good customer, a company wants you to hang around.
If you are prepared to switch credit card companies if your credit card company does not give you a better rate then your chances of getting what you want increase drastically. Don't make a promise you don't intend to keep and if you are contemplating switching to another card with a lower interest call your current company and see if they are willing to match or even beat the competitor's offer you are considering.
The worst thing that could happen would be that they tell you no, but most likely you will get what you ask for. Don't just find one source for information on credit cards and interest rates but do your homework so you are aware of various perspectives. In this information age we live on, there's a lot of valuable input you can find on any subject so take your time to find out what you need. Therefore, we have gathered some information for you to save you some time since research is always a difficult task. Yet without proper research there is no way to acquire the material you need to understand.
We've all been tempted by 0% credit card interest rate offers. These offers are usually for short periods of three to 12 months and there are usually conditions attached. For example, the preferential rate may apply to balance transfers, but not to cash withdrawals. The low interest rate may not apply to credit card cheques or purchases either.
People who are carrying a large debt will want to make the most of 0% interest rate offers. Here's how to keep your interest rate at 0%.
Researching 0% Credit Card Deals
First of all, it is best to research the card offer thoroughly. Consumers need to find out: - what period the 0% interest rate is for - whether it is for balance transfers only - whether it applies to other spending on the card - what the rate is for cash withdrawals or credit card cheques - whether there is a balance transfer fee - what other incentives there are for using the card
Answering these questions will help consumers to decide which 0% card is right for them. It is especially important to pay attention to the period that the incentive offer lasts for. To keep paying 0% interest, consumers will need to apply for a new 0% card a month to six weeks before the old offer runs out. This leaves time to get the card, activate it and transfer the balance without incurring any additional fees from the current card company.
Rate Surfing Benefits
Moving from card to card, or rate surfing, is a common way of keeping interest rates low and paying off as much of a debt as possible. Using a 0% card means that any money paid is reducing the outstanding debt rather than paying interest. This is good news for consumers' long term financial stability.
Of course, there's no guarantee that consumers will be able to get another card. This will depend on their credit profile. The best way to maintain a good credit profile is to have some credit card debt (but not too much) and to make all payments on time. This will show card companies that you are a good credit risk.
Watch Out For Balance Transfer Fees
Card companies do not like credit card tarts, another term for rate surfers, because they lose hundreds of thousands of pounds' worth of income that they would normally gain from interest. As a result, many credit card companies take their money up front by charging a balance transfer fee of around 2% of the balance transferred. Even with this fee, savvy consumers should be able to shop around for the best rates and pay much less interest than they would normally have done.
In addition to the incentive of a 0% interest rate, consumers can also benefit from other rewards. These include points that can be used for travel, earning vouchers, cash back and charitable contributions. This means that consumers can reduce their outstanding debt and gain a reward as well.
Both Charley Huang & Joseph Kenny are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Charley Huang has sinced written about articles on various topics from Mortgage, Your Online Business and Finances. For more information on or visit. Charley Huang's top article generates over 60500 views. to your Favourites.
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