It's a known fact: Everybody likes a good deal. You don't want to learn you paid too much for something, and you don't like finding out you've been fleeced on a loan. Everybody wants the best interest rate they can get on their credit cards. If your credit score is good, you want to keep it that way, and lower rates mean more manageable payments.

Of course, low interest rates don't just appear magically. Your credit card company is not going to lower it all by themselves (unless you have a variable rate and the rates everywhere are falling). Take a look at your current rate. If it seems too high, and your credit score is good, you should do something now.

The first move is to simply call your credit card company and say you want a lower interest rate. They might give it to you -- if you have some bargaining power. You have to have something in your favor, though; they're not going to drop the rates just because you asked politely.

Lucky for you, it's pretty easy to manufacture some leverage for yourself. You probably get dozens of credit card offers every month. Locate one that seems fairly appealing and that is better than your current card. Tell your card to give you the same offer or you're jumping ship.

First, though, think about your current relationship with your lender. Do you pay on time? Do you go over your limit frequently? Blemishes like this make you a less-desirable customer in the company's view, and the lender has no reason to try to make you happy. On the other hand, it doesn't hurt to ask anyway. All they can do is say no.

In some cases, the new offers you've gotten in the mail might be so appealing that your current lender simply can't match it, regardless of what a great customer you are. In that situation, go ahead and switch over to the better deal. "Loyalty" to a particular lender rarely pays off; go where the best deal is.

Keep in mind, of course, that super-low introductory rates disappear after a few months, and the new interest rate is often very high. And if you do switch cards, make sure to get rid of the old one and cancel the account! If you suddenly have two cards to use, and you use them both often, then you'll be worse off than you started, with a bad interest rate AND a second card to pay off. That sort of thing can seriously threaten your credit score.

What about department store credit cards? Avoid them like the plague. If you have one, chances are the interest rate is higher than anything you've got on your regular MasterCard or American Express. And the fact is, the store-card banks almost never lower your interest rates, period.

So stop using the store cards. Use a regular card in its place (or quit shopping there, if you can stand it). Chop up the store cards and close the accounts. Get them off your credit report and scores now.

Then, if there's space on one of your regular credit cards, transfer the balance from the store card, or take cash advance (if the interest rate is low enough) and pay it off.

There is a lot of competition for your consumer dollar; that's why you get so many credit card offers in the mail all the time. That's good for you, though, because it means it's a buyer's market: The consumer can set the standards, because the lenders know you have lots of other options for where to take your business.

Copyright © 2007-2008 www.unioncreditreport.com. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share Opinion:

           

Comments

No Comments

If you have something to say, please leave your comments below.

Your Name: *
Your Email:
Your Comment: *
Enter Number from Picture: *
* - Required Fields