Some credit card companies (Discover notable among them) are in the habit of periodically checking your credit report. They look for things like increased purchases or credit inquiries that result in a lower score. And then they use it as an excuse to jack up your interest rate. This is a somewhat cruel and disheartening practice for some, especially since it makes it extra difficult to pay down a balance.

So I repeat my mantra: If you use credit cards, pay the balance off each month. If you do make a large or emergency purchase, do what is necessary to ensure that it is paid off in two or three months (six months at the very outside).

Credit cards benefit when you carry a balance. And you can destroy the value of any rewards by paying interest on credit card balances.

Post from: EveryJoe

What’s Your Credit Card Interest Rate?

Readers who called their card issuers to negotiate a lower rate succeeded more than 50 percent of the time. And 79 percent of readers who tried were successful in persuading their card issuer to waive a penalty fee. In another recent survey the Consumer Reports National Research Center found that 57 percent of people who bargained with their banks or card issuers over fees saved $50 or more.

This is great news, because credit card interest rates and fees are on their way up. But, if you are a good customer with a reliable record, you can actually get a break. Here are some tips that might help you get a lower credit card interest rate:

1. Be polite, no matter who you are talking to
2. Ask for a supervisor if the person you are speaking with can’t get you a lower rate
3. Mention other offers, or mention that you are downsizing your wallet and want to keep the card with the best rate
4. Make sure that you mention that, overall, you are satisfied, but you think that you should have a lower rate
5. Point out your impeccable (or nearly so) payment record and your good credit

If you have a good record, you are likely to get at least a 2 or 3 point lower credit card interest rate. And if you are really serious, cancel the card if you do not get the reduction.

Post from: EveryJoe

Can You Get a Lower Credit Card Interest Rate?