Negotiate Credit Card Interest Rate

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Negotiate Credit Card Interest Rate

By Credit Federal | Published 05/15/2008

If you've been a good customer with your credit card company, you can negotiate a lower credit card interest rate.

Lower Credit Card Interest Rate

A $5,000 charge at 16% interest could be paid off in 1 year with monthly payments of $453.65. But, let's raise the interest rate. That same $5,000 charge with a higher 22% interest rate would cost you $467.98 per month. That's a difference of $14.33 per month, a total of $171.96 at the end of the year when the charge is repaid.

As you can see, the interest rate charged by your credit card company affects how much you pay in finance charges when you carry a balance and don't payoff all charges in full every month. The higher the interest rate, the higher your finance charges and total cost will be. That's why it's important to you to get; and keep, the lowest interest rate possible.

Here's how you can negotiate for a lower credit card interest rate:

Call your credit card company, and let them know you've been a good customer and that you've received credit card offers in the mail; or online, for cards with the same level of rewards and credit limit but at a lower interest rate. Ask what they can do to be more competitive?

The representative will place you on hold, during which time he/she will be reviewing your past history of charges and payments. Once they confirm that you have indeed been a good customer, they will likely come back with a lower rate. At that point, it's up to you if you feel the new rate is acceptable or not. If you don't think so, let the representative know. But keep your cool. Don't yell and certainly don't become abusive. Be very patient and polite, because you can rest assured the representative is working hard to help you, to keep you as a customer.

Never try to bluff the representative by claiming you have a lower rate credit card offer if you really don't. You might get called on your bluff and will have to follow through on your threat to cancel your account if the rate isn't lowered, or lowered further.

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Negotiate Credit Card Interest Rate - by <a href=http://creditfederal.com>CreditFederal.com</a> <div style="text-align: left; font-family: Verdana;">If you've been a good customer with your <a href="http://creditfederal.com/credit-card.html">credit card</a> company, you can negotiate a lower credit card interest rate. Lower Credit Card Interest Rate A $5,000 charge at 16% interest could be paid off in 1 year with monthly payments of $453.65. But, let's raise the interest rate. That same $5,000 charge with a higher 22% interest rate would cost you $467.98 per month. That's a difference of $14.33 per month, a total of $171.96 at the end of the year when the charge is repaid. As you can see, the <a href="http://creditfederal.com/card-interest-rates.html">interest rate</a> charged by your credit card company affects how much you pay in finance charges when you carry a balance and don't payoff all charges in full every month. The higher the interest rate, the higher your finance charges and total cost will be. That's why it's important to you to get; and keep, the lowest interest rate possible. Here's how you can negotiate for a lower credit card interest rate: Call your credit card company, and let them know you've been a good customer and that you've received <a href="http://creditfederal.com/stop-credit-card-mail.html">credit card offers in the mail</a>; or online, for cards with the same level of rewards and credit limit but at a lower interest rate. Ask what they can do to be more competitive? The representative will place you on hold, during which time he/she will be reviewing your past history of charges and payments. Once they confirm that you have indeed been a good customer, they will likely come back with a lower rate. At that point, it's up to you if you feel the new rate is acceptable or not. If you don't think so, let the representative know. But keep your cool. Don't yell and certainly don't become abusive. Be very patient and polite, because you can rest assured the representative is working hard to help you, to keep you as a customer. Never try to bluff the representative by claiming you have a lower rate <a href="http://creditfederal.com/offers-credit-cards.html">credit card offer</a> if you really don't. You might get called on your bluff and will have to follow through on your threat to cancel your account if the rate isn't lowered, or lowered further. </div> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.