How to Stay on Top of Rising Interest Rates
The financial crisis of the last couple of years has left many banks and creditors scrambling to recoup their losses. The overall losses are astronomical, and millions of customers are simply without the means to repay their credit card debt.
Unfortunately, whether we like it or not, the losses felt by many credit card companies and banks are simply passed onto customers in good standing. Although this certainly isn’t something that is said outright, many of us have likely experienced interest rate hikes and additional fees on our favorite credit cards over the last couple of years.
As a customer in good standing, you do have rights regarding interest rake hikes and other fees. In other words, don’t feel like you have no other option than to accept higher interest rate charges on your credit card if you have always paid your bill and kept your credit in good standing.
1. Keep your credit card account in good standing – no matter what! You have little room for negotiation if you fail to pay your bill on time.
2. If your credit card company sends you notice of a rate increase, immediately call the company to negotiate. Once again, if you have maintained an excellent credit history you will hold the cards regarding your interest rate. Ask the credit card company to maintain your current interest rate. If you have no luck, ask to speak to a supervisor and plead your case with him or her.
3. If your current credit card company does not budge regarding your current interest rate, simply look elsewhere. If you have maintained an excellent credit rating, switching credit cards should not be a problem. Although obtaining credit may be harder than it was a year or two ago, individuals with good credit are still being sought out by creditors.
4. Look for a credit card with a low, fixed interest rate or one that has a low, introductory offer. Also, look for a credit card that includes a low rate on balance transfers and or a low fee on balance transfers, as these costs can be significant, regardless of whether you have secured a low interest rate.
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