Category: Credit Cards

Nearly ninety percent of credit card users assume that credit card interest rates are non-negotiable. While it is true that the process has become much more difficult than it used to be, theoretically it may still be possible to work with your credit card company to lower your interest rates. Think about it: If you can negotiate even a nominal one percent reduction in your credit card interest rate, you could end up saving hundreds of dollars every year if you carry a substantial balance. Over a period of time, these savings add up.

While there is no guarantee that your lender may agree, here are some common sense approaches you may want to consider:

What causes credit card interest rates to go up

Unlike variable interest rate credit cards, if you have opted for a fixed interest rate credit card, generally the rates should not increase very often. If they do, you provider will mail you an advance notice. The notice will give you the option to accept the changes or dispute them. There is a catch, however. If you do not agree with the changes, your credit card provider may ask you to repay the full balance owed to them and also close your account.

Now, if you have a variable interest rate credit card the story is completely different. With variable interest rate credit cards, your interest rate is tied to a market index — generally, the prime rate. Every time this index changes your rate may go up, often without an advance notice. The terms should disclose how this process works.

Apart from market forces and company policies, there is one more factor that may cause your credit card interest rate to spike. There are certain trigger points (such as late payments, over-the-limit transactions, and delinquencies) that may cause your interest rate to go up.

Do your homework

You will need to understand some basic credit card related terms, such as grace period, APR, billing cycle, and other basic financial terminologies. It would also help if you know what competing credit card companies are offering to individuals within your credit score range.

Prepare scripts for two layers of calls

Call your company to initiate the process. Your initial calls [yes, calls] will be answered by the customer service department. You may not achieve much success during this first layer of your efforts. Be prepared for a “No!”

Don’t give up, though. Politely, but firmly request the customer service representative to transfer your call to a supervisor. This is where your second script will come in handy. Explain to the supervisor that you have always made your payments on time and have otherwise been a good customer. Firmly request that your interest should be lowered. If the supervisor denies, ask for a second layer of escalation.

Every organization is different and with some companies you may have to go through the hoops until you finally reach an executive who may be able to assist you. Be persistent!

If the company denies your request, ask for a promotional rate

Credit card companies float promotional offers periodically. If your negotiation request fails, ask the company to consider you for a promotional program. These short-term promotions could lower your rates for a period of three months to as much as eighteen months. Even a short-term reduction will allow you to pay off a significant portion of your principal balance at a low interest rate.

Some non-profit organizations could assist you as well

If you are under financial strain or have suffered a financial emergency (such as a layoff), several non-profit organizations could assist you with the negotiation process. These organizations have substantial experience in working with credit card companies and may be able to empower you with a large pool of resources. Their expertise and experience could make all the difference. Given their size, clout, and legal knowledge, credit card companies may be more receptive to their requests.

If all else fails

It is possible that the above steps could fail. If so, you need a backup plan. If your credit is good, the easiest way to get a low APR or 0% APR credit card would be to transfer your balances to a credit card that offers low interest rates for an introductory period. Click here to compare low interest and 0% APR credit cards.

Joining a credit union or a large association that offers low interest rate credit lines could be a good option as well.

Let us know if this article has helped you. As always, don’t forget to share this information with your friends.

Bad credit rating may be a huge hindrance in successfully acquiring credit cards, especially those with enviable rewards like cash backs, frequent flyer miles, and other forms of reward points. If you do manage to get a credit card with bad credit rating, the interest rates will probably be high. Therefore, it is advisable for you to repair your credit to be eligible for credit cards with rewards and low interest rates. Simply follow the tips given below to get you started in enhancing your credit.

Hold the applications

Card issuers always advertise credit cards with tempting rewards and rates that make you want to apply right away. Start applying only when your credit score is relatively better. This will not only improve your chances of getting approved, it will also minimize any temporary point reduction.

This may seem difficult to do but you have to focus on repairing your credit instead of trying to get a credit card with bad credit rating.

Gather all the facts

If you have bad credit, chances are, you have received several rejections on credit card applications, but you should never let it get to you. What you need to do is find out the reasons for your denial and keep a record of it, as it will help you determine what you need to work on (in terms of improving your credit score). In most cases, there are other reasons for disapproval aside from low credit score. Take note of all the reasons and work on them one at a time.

Besides this, you also have to educate yourself on the basics of credit like the factors affecting your credit score and basis of approval for a credit card. Do a little bit of research to help you understand them. Therefore, if you wish to get a credit card with bad credit rating, you must first equip yourself with sufficient knowledge on credit, as you will have better chances of approval.

Repair your credit rating

One quick way to repair credit is by piggybacking on the excellent credit of a friend or family. Just ask one of them to add you as an authorized user of an old credit account but you do not actually have to use the card. If it’s not possible to do this, you can get a small loan from a bank and pay it back in full. This will have a positive effect on your credit as it shows your credit worthiness, thus taking you closer toward your goal of obtaining a credit card with bad credit rating.

Synopsis

There are many effective ways to fix your damaged credit and as long as you are determined and disciplined in following the guidelines, you are sure to attain a remarkable credit score. Soon, you will be eligible for better card offers and you will not have difficulties in trying to get a credit card with bad credit rating.

Nowadays the thought of saving money is imprinted on everyone’s mind, because the cost of living all around the globe is getting higher. Consequently, cardholders are inclined to look for low interest credit cards as a way to reduce finance charge costs. However, for regular individuals, it is tough to find a low interest rate credit card. On the bright side, it is not impossible to obtain such cards for there are still viable options left, like the ones below, which you can consider.

Join a credit union

A credit union is a not-for-profit financial institution governed by its members. A credit union’s main purpose is to educate members to be financially responsible. Additionally, it provides certain financial services to members and, more importantly, it offers low interest rates on credit cards.

The credit union’s not-for-profit status is the reason why credit cards issued by them have lower interest rates as compared to banks. Meaning, they do not have to raise rates, like banks do, just to generate revenue. In fact, there are studies that can vouch for claims that credit unions offer better interest rates. Hence, if you want a low interest rate credit card, join a credit union.

Seek great deals on card promotions

If you prefer not to join credit unions, there are other ways to get a low interest rate credit card; one of which is by looking out for introductory low interest rate offers. Many credit card companies, these days, have low introductory rates to attract more applicants. Some even go as low as 0% on their promotional offers. Although less costly, these promotions expire but when it does, you can always do a balance transfer or negotiate for a lower rate. Just watch out for when it terminates so you can plan your next move.

Build Towards a Good Credit Score

If the above suggestions still do not persuade you, then build towards a good credit so you can get a low interest rate credit card later on. It may seem like the slowest and hardest route but it absolutely is a sure-fire way to lower your interest. Furthermore, there are less difficult ways to do this, such as getting a credit repair card, which you can use to start building some credit.

Credit repair cards can assume many forms such as secured cards and prepaid cards. Just bear in mind that the secret to successfully establishing good credit is making regular and prompt payments. When you reach your credit goals, offers for low interest credit cards will be pouring in.

Synopsis

There are many means, by which you can get a low interest rate credit card, such as those listed above. Even so, none would work if you remain delinquent on your accounts. It is therefore necessary to be a responsible cardholder because in the end, it is still the best way to go towards your goal.

Everyone knows that having excellent credit opens up a lot of good opportunities, such as offers for low interest credit cards for good credit. If you have excellent credit, you have probably received numerous credit card offers from different card issuers. However, before you accept such deals, take some time to think about the repercussions of your decision. Here are some helpful tips you should definitely consider.

Get only what you need

These days, it is common to have more than one credit card. In fact, most people have different credit cards for various purposes. It is easy to get credit cards when you have high credit scores but that does not mean that you have to get as many as you can. Although credit cards are helpful, having one too many can have adverse effects on your credit standing and your finances as well. Therefore, it is advisable not to go overboard. Instead, get only what you need.

Typically, one or two credit cards intended for everyday purchases are enough for an average individual. You can have an extra card for emergencies. If you wish to go more than that, you can do so as long as you have enough funds to pay for the extra cards. Another option is to apply for low interest credit cards for good credit to reduce your finance charges. In turn, this can help you manage several credit card accounts.

Apply for cards one at a time

Consumer reporting agencies, such as credit bureaus constantly keep track of your credit history including your applications and payment behaviours. Applying for several cards within a short span of time, regardless of the outcome, is detrimental as it raises a [temporary] red flag on your credit report. Aside from this, frequent credit pulls also hurt your credit temporarily and can even drag your credit score a couple of points down. So when offered for low interest credit cards for good credit, go at it one at a time to avoid damage to your credit.

Maintain your excellent credit

Having many credit cards is enjoyable but can also be challenging, as you have to sustain each one of them in good standing. Many people find this impossible to do.

Nevertheless, maintaining a couple of credit cards is a piece of cake when you have the necessary means. If you have good credit, you can easily end up with more credit cards than you actually need, as you will constantly get offers, such as low interest credit cards for good credit. However, see to it that you are prompt on your payments and so you would not end up losing the excellent credit you worked so hard to achieve.

Synopsis

Offers for low interest credit cards for good credit are given only to deserving candidates. That is why it pays to build and uphold an outstanding credit because only the responsible ones get great deals like these. As they say, no good deed goes unrewarded.

In this day and age, bad credit scores is nothing out of the ordinary. If you have bad credit, you will probably have a hard time getting a credit card as issuers have raised approval standards. However, this is not a reason to fret because credit card issuers have created credit cards for not so good credit to give you a second chance with building an outstanding credit.

Secured credit cards

Credit cards of this type require a security deposit prior to its release. Usually, cash is the preferred form but you can also pledge anything that has high monetary value. Such security deposited will be the basis of your credit limit, which is typically equal to the amount deposited or the monetary equivalent of the property involved. You can also raise this limit by increasing your security deposit. In some instances, the issuer will reward you with a higher credit limit provided that you pay your bills promptly.

Credit cards for not so good credit — secured credit cards — are available online. They could help if you are in the process of building credit or trying to repair it.

Regular or unsecured credit cards

Despite having bad credit, you can still qualify for a regular credit card but with higher interest rates and fees. Although this may seem unattractive, it actually helps you in a way because you will be obligated to pay the total amount due, thus, avoiding debt. Aside from this, your initial credit limit may also be lower than those who have excellent credit but it will gradually increase depending on your payment performance. This may seem like a downside at first, but then again, it can help you improve your spending habits and consequently enhance your credit.

So when looking for credit cards for not so good credit, do not dismiss regular credit cards for its higher rates and lower limits. Instead, use these restrictions as tools for improving your overall credit standing.

Store credit cards and gas credit cards

Store cards and gas cards are perfect for establishing credit and repairing damaged credit as well. The beauty of having these card types is that you can use them for your everyday needs, such as food and gas. The only drawback is that these cards are made specifically for certain establishments, thus, limiting their usage. In spite of this, store cards and gas cards are still great credit cards for not so good credit because they are available online, subject to qualifications criteria listed in their terms.

Synopsis

Despite the horrors of having bad credit, you can still find a silver lining in the form of credit cards for not so good credit. These credit cards may not compare to the other types, but in reality, they act as a mechanism to help you toward your goal of improving your credit score.

Credit card issuers differ in interest rate offers due to a number of reasons. Some interest rates are based on current financial market and some on your financial standing. Knowing each issuer’s interest rate is important as it will help you determine which one is better. In this connection, it is vital that you know what to look at when you compare credit card interest rates to come up with an accurate and comprehensive assessment.

Variable vs. Fixed Interest Rate

When you compare credit card interest rates, the first thing you should do is determine whether it is fixed or variable. Fixed interest rates, as the name suggests, stays the same regardless of market fluctuations — in that, it is not tied to any market denominator. However, it is not absolutely stable as certain circumstances, such as market conditions, may cause it to change. In this scenario, the card issuer sends you a notice of such change before it takes effect.

Variable interest rate, on the other hand, changes ever so often because it is dependent on the prime rate, which also fluctuates periodically. In contrast to fixed interest rates, card issuers do not give you prior notice when variable rates fluctuate and change.

Different types of interest rates

People use credit cards for various purposes and it is for this reason that most issuers give specific interest rates for each type of transaction. For instance, an issuer may give an interest rate specifically for purchases, another for cash advances, and one applicable only for balance transfers.

Sometimes, you get a credit card thinking that you have a low interest rate, and suddenly be surprised to see other higher interest rates involved. Usually, this thing happens when you do different transactions with your card, so it is important not to get confused on transaction rates. Therefore, when you compare credit card interest rates, make sure to get all applicable interest rates and not just the one that applies to a specific kind of transaction.

Promotional interest rate

Credit card companies offer introductory rates to draw more customers. These introductory rates are usually lower than regular rates and some even go as low as 0%. You can even avail of these promotions despite having bad credit. However, these rates are not permanent and usually last only for a couple of months. Therefore, when you compare credit card interest rates, verify if the rate offered to you is an introductory rate, as it will surely have an expiration date. If it is, remember to check when it expires and what your rate is going to be after which.

Synopsis

When shopping around for the best credit card, it is customary for you to compare credit card interest rates. Nevertheless, simply asking for the rates and jotting it down does not really give you a clear  representation of how much the card is going to cost you. That is why the best thing to do is to study the interest rates meticulously and get as much information as you can get.

As a beginner, you must grasp the basics of credit cards such as proper utilization and management in order to maintain financial sanity. To do this, simply go through the credit card guide below, and focus on some core points.

Discover multiple purposes of your credit card

Originally, the primary function of credit cards was supposed to be a tool to pay for purchases. But ever since credit cards became a global trend, you can utilize credit cards for various purposes. You can now not only  pay for items you have purchased from malls, pharmacies, groceries, restaurants, and other establishments, but also can use it for making hotel reservations and even for booking flights.

Most service providers accept credit card payments, which means that you can pay your utility bills through credit cards. In addition, you can make online shopping easier with the aid of your credit card. Just remember that in doing so, you must arm yourself with the proper credit card guide for online purchases.

Be aware of your spending limit              

Most credit cards have spending or credit limits. It describes the maximum amount you can charge on your credit card. When you reach the credit limit, you cannot make further credit card charges until the limit refreshes itself. However, some issuers allow you to spend beyond your credit limit but you may have to pay for an over-the-limit fee. If you do not know what your limit is, go check with your issuer and make sure that you stick to it.

Understand your credit card interest rate

Everything in this credit card guide is important but the most crucial thing you should understand is your interest rate. Basically, an interest rate gives you a picture of how much it costs to use your credit card. Whenever you carry a balance on your account, it accrues a certain amount of interest over time and continues to do so until you clear your balance. Therefore, it is wiser to pay your entire bill so you can avoid interest charges.

Expect a monthly statement of account

Every month, the card issuer sends you a statement of account that shows all your credit card transactions, your minimum amount due, and your total amount due. Your minimum amount due tells you the required amount you have to pay to continue using your card. Your total amount due, on the other hand, is the sum of all your credit card charges for the entire billing period.

Synopsis

Credit cards are easy to use as you can just present it at the cashier and you are done. However, before you use your card, take some time to understand basics. This extremely basic credit card guide was designed to help new credit card users.