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There’s An App For That: Credit Card Interest Rates

January 25th, 2010


With the economy in the tank, the credit crunch has hit all areas of our lives. Included in this crunch is the credit card industry. Two years ago, the credit card industry was pre-qualifying unemployed people for $15,000 limits. Now, interest rates are hiked without any reason; and if the account is not active enough, it will be shut down, potentially affecting your credit score and financial plan.

App: Press to Have Your Interest Rates Reduced

Another tangible way to reduce your monthly budget expenses is to call your credit card companies and request that your interest rates be slashed. If you are carrying a balance, it comes with a monthly minimum payment. The higher the interest rate, the higher that minimum payment will be.

A Personal Account

A friend of mine, Stephany, recently took this application to heart. She mistakenly missed her payment due date by one day, and the credit card company immediately jacked her interest rate from 13% to 29%! Gone are the days of a free pass by the credit card company!

Persistence

The key to getting a rate reduction is persistence — don’t give up! Stephany called the credit card company three times before getting a hold of someone who was willing to work with her. The first two rejected her, but on the third call she spoke to a woman who said she could help her.

Her stragegy? Stephany explained that she was working to pay off the current balance so she could use the card later in the year for a big event. This gave the company a bit of assurance that she would be back to the trough to pay interest later. I hope Stephany isn’t back feeding at the credit trough later this year, but the prospect of future business was enough for the credit card company to lower her rate.

Success!

The lady at the credit card company lowered her rate from 29% to 9%, which was even lower than the original interest rate! It may not be a lottery windfall, but when you’re trying to scrape every extra dollar together in your monthly budget, every bit counts.

Conclusion

Have you called your credit card company to request interest rates lowered? I’d be curious of your experiences.

Jason Budget

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