Credit Cards for Bad Credit: Getting a Better Interest Rate
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by: barrywaters
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If you are saddled with a credit card for bad credit, you are probably paying sky high interest rates. You are probably resigned to those high interest rates, too, because the only way to lower your rates is to wait for your credit card issuer to decide to lower them... or is it? Credit card users across the United States have found that there is a way to get better credit card terms: Ask.
The most effective method is to call up your credit card company and tell the customer service representative that you have a more attractive offer from another company and are considering switching credit cards. You may be sent to another customer service representative who specializes in convincing customers to stay, or you may remain with the representative who took your call. Either way, when you are speaking with someone who can change your interest rate, lay out your case politely and calmly and be prepared to negotiate. If you cannot come to an agreement on your first call, thank the representative, end the call, and call back another day, when you may get someone who is more willing to help you. (Representatives are required to follow guidelines, but they have some wiggle room in deciding how far they are willing to help a given customer.)
Credit card customers who tried calling up their issuers and using this method were able to lower their interest rates more than half the time, for an average drop of 5 to 6 percent. Some were able to get their interest rates halved. That is a considerable reduction, especially if you have the kind of interest rates associated with a credit card for bad credit.
Your credit rating and the length of time you have been with your credit card issuer will be two of the most important factors in determining whether you will be able to get a rate reduction. If you have bad credit, focus on how long you have been a customer, how regularly you have paid your bills on time, and the comparatively small percentage of your credit line you are using, since all of these are also factors in whether your credit card issuer is willing to give you a break in your interest rate.
So call to ask your issuer to lower your interest rate, and be friendly but persistent. The likelihood that you will get a significant reduction in your interest rate is high. This method works whether you have a regular credit card or a credit card for bad credit, and the best part is that if your credit card company turns you down, there are no negative repercussions. Why not pick up the phone and place your first call today? Your credit card terms can only get better.
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