A few of my credit cards charge higher rates than other cards I see advertised. What can I do to try to get the rate lowered? Do I need to switch cards? I'm always getting mailings from other cards with lower rates.
You may not need to switch to another card, but use those low-rate mailings as leverage when you call your card company and ask for a lower rate. "Let them know that you've been using the card, or will start using the card, if they give you a better deal," says Scott Bikler, founder of DebtSmart.com and author of Talk Your Way Out of Credit Card Debt. "Read a few of the low-rate offers to the representative so they know you have options and that you will transfer your balances if they don't comply." If that person can't make the change, ask for the supervisor. "Be patient," says Bilker. "You may have to tell your story a few times."
It also doesn't hurt to ask the credit card company to waive the annual fees. "If the bank doesn't waive that, then remind them that there are many other cards that don't charge those fees and that you'll be using one of those banks shortly," he says.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If the credit card company won't waive the fee, try asking the bank to change the card to a different product that doesn't charge a fee. Bilker says he has had luck using this tactic.
If the rate negotiation doesn't work, call your other credit card companies and ask if they have a low-rate transfer deal, says Bilker. Then transfer the high-rate balances to the low-rate card. However, you will need to keep track of any teaser rates, which often rise after six months or so. Perpetual switching can hurt your credit score, too, so it's best if you can pay the card off by the time the low introductory rate expires.
See Pocket the Best Credit Card and our Yields & Rates page to search for the best credit card deals.
-
What the Comcast Cable Spinoff Means for InvestorsComcast has announced plans to spin off select cable networks and digital assets into a separate publicly traded company. Here's what you need to know.
-
TJX Stock: Wall Street Stays Bullish After EarningsTJX stock is trading lower Wednesday despite the TJ Maxx owner's beat-and-raise quarter, but analysts aren't worried. Here's why.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
