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If you are suffering from incredibly high interest rates on your credit card, it is never too late to convert to a low APR card. Converting your interest rate to an affordable number has an impact larger than you might think, a few percentage points difference can change your life.
Unbelievable? Try out the Wealth Manager or the Prosperity Planner to see the difference between a 23.99% interest rate and a 19.99% interest rate. Over 10 years time, the difference you pay in fees on $10,000 is simply $24,000 !!!
So now that switching to a lower interest rate can actually make you save a lot of money, how to do it?
To convert your existing card into a low interest credit card, follow three simple steps. Firstly, establish a good credit history. Secondly, do some intense research, and thirdly, negotiate with your credit card company to give you a lower rate.
Step 1: Establishing a good credit history is the hardest step to perform in this three-step approach. If you have a flawed record of credit card payments, you must first build a better credit reputation. It takes time to do it, but there are ways to get there. For example, find a credit card or that offers you the service of rebuilding your credit rating. Your credit rating is important in building credibility, because the cards you will have access to will offer you better rates. After achieving a good credit score, you can move to step two.
Step 2: Do some research on the available credit cards in line with your credit score. The goal is to match your card to a low interest credit card from any credit card company. Search for a card that works like the one you have, but with a better rate. If you can come up with at least two which offer the same rewards, incentives, and privileges like your current card, you are all set for the third step: negotiation.
Step 3: Negotiating with a credit card company. With the data from your research in hand, call the credit card company and ask them to lower the rate on your current cards. Cite a good credit history, and make them acknowledge that you will be quite a loss in their list of customers if they do not give in. Use your research data wisely to put pressure and obtain what you are calling for. The main reasoning behind the fact that you can achieve this is that if others companies can offer similar cards at a lower rate, why can’t they do the same thing?
After doing all three steps, two possibilities will emerge. The first possibility is that with all your excellent reasoning and research data, your credit card company will give in and your old plastic will be converted into a low interest credit card.
The second possibility is that your request will be denied, at which point you could cheerfully terminate your contract with this old company and sign on with a new one. There would be no trouble choosing because you have already done the research, and have at least two ideal cards in your list.
You just saved quite some money!
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