Negotiating credit card rates… You hear about it all the time: people walk into a bank and reduce their business or personal credit card rates from 19% to 10% or even less. But does negotiating credit card rates really work?
Negotiating credit card rates simply means requesting that your interest rate be lowered so that more of your payments go towards the principal sum (reducing the debt) as opposed to going to interest (paying the bank).
The self employed sometimes find themselves in a quick pinch and unable to pay off their credit cards. When in a bind, negotiating credit card rates right away is a great first step.
Consider these tips when negotiating credit card rates:
- Take a deep breath. Negotiating credit card rates doesn’t have to be painful.
- Educate yourself. Before negotiating credit rates take an hour to remind yourself of your goals and your financial situation, such as the rates you’re paying.
- You are not alone. Debt is normal. Be confident and assertive.
- Contact another banking institution and enquire about moving your credit card debt elsewhere for a better rate. You can use this information as leverage when negotiation your credit card rate with your existing financial provider.
- Decide whether you will be negotiating credit card rates over the phone or in person.
- Go ahead and start negotiating credit card rates!
If you’re interested in negotiating credit card rates it probably means that you carry a balance on your credit card and are paying interest on your credit card purchases. If you’re in this circumstance, it’s time to evaluate your financial strategy. Credit cards are one of the worst ways to gain access to credit because credit cards tend to carry high interest rates, such as 19% or even higher. If you need access to additional credit, consider other financial products (such as debt consolidation or a secured line of credit) before maxing out your credit card.
Negotiating credit card rates is certainly a good idea, because a lower interest rate means less money wasted on interest. But when it comes to finances it’s wise to take a step back and reevaluate your financial strategy. What may have worked for you in the past may not work for you today, so be sure to assess your financial strategy at least once a year.
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