Credit Cards Apr

It may not seem like credit card companies would be open to negotiation – after all, they’re in the business of lending money in exchange for hefty interest payments – but as greater numbers of individuals default on their credit card payments, card companies are finding more and more reasons to open their doors to negotiations when individuals request special consideration.

If your credit card balance is under control, but higher than you’d prefer, and you have a good history of making payments, it’s worth phoning your credit card company and requesting a lower APR. Point out that you’re making your payments on time and charging new purchases responsibly, that you’ve been a customer for a substantial period of time, and that you have recently received a number of pre-approved offers for zero APR cards. Ask the client services representative if, in light of those facts, the company might be willing to reduce your credit cards APR interest rate. While this tactic may not meet with success every time, it’s always worth asking, and as a customer who has proven him- or herself to be a good investment, it’s worth making companies compete for your business. Asking for a lower APR, unlike some debt reduction services, does not show up on your credit report, and so will not have a negative impact on your credit. Another way to negotiate a lower rate is to find a lower rate at a competing company, and threaten to transfer your balance to their 0% interest cards. As you have a high balance, you’re actually one of your credit card company’s best customers – ask them (politely) to treat you that way!

For those who are having trouble managing their credit card payments, a reduction in credit card APR can have tremendous effect, particularly since it can lower the amount of interest you pay overall on a total. If your account is in good standing with high minimum payments, it can be difficult to get someone at the credit card company to pay attention to you. Some individuals have had success in reducing their interest rate through a combination of changes to their account (usually closure of a maxed-out charge account) and an inability to meet minimum payment requirements. Although pursuing this route to a reduction in your APR can be emotionally draining and intellectually tedious, if you have other lines of credit open or if your credit account has been used to its full capacity and is no longer useful, it can wind up saving hundreds, if not thousands, of dollars.

Credit card services have become highly sophisticated, and if you have a high credit score you may be able to get cards that come with considerable perks. Look at the annual fee you pay for your credit card, and the perks you receive through it, and decide if you may actually be better off paying a slightly higher credit card APR and reaping the benefits of your membership. In rare cases where patrons choose loyalty programs that feed into their natural lifestyle, they can sometimes save money in the long run by paying a higher yearly fee or APR but taking full advantage of their benefits.