Getting A Good Credit Card Rate

A few years ago credit card companies decided to jack up the interest rates of many Americans. What angered many was that this was not the fault of customers. Some  customers had been paying their bills every month on time yet they still had their rates raised. Some other customers have actually had their accounts switched from a fixed rate account to a variable rate one with no warning.

This translated into higher minimum payments. So customers who were paying off their interest and principal were now forced to just pay the minimums. This means that their debt would never go away, as they were just paying the interest only.

Card holders were furious when this happened, but what were their options? If they cancel their account their credit score would suffer and they still would owe their balance at the new higher interest rates.

So as a consumer, what recourse do we have? It’s simple, switch credit card companies. The good thing is that there is a lot of competition in the credit card market. Competition forces companies to offer very competitive rates, even if it’s just an introductory rate. You may be able to qualify for a 0% interest rate card for the first year. During that year you can make some serious progress on paying off your debt, if not get rid of it all.

Doing this could hurt your credit score though. By opening a new account and closing another one, your score will suffer. So before you switch credit cards, give your current credit card company a chance to keep you as a customer.

Gather up your current credit card offers so you know what other companies are offering you. Then place a phone call and let them know about the other offers you are receiving. Tell them that you would rather stay with them, but it’s very difficult to do so when you’re receiving favorable offers from other companies. Give them a chance to match those offers. If they can’t, perhaps they can at the very least put your interest rate at the rate it was before they raised it.