Ok to start off this post I initially got the idea from Five Minute Finances #2: Call Your Credit Card CompanyÃ‚Â written by “The Simple Dollar.”Ã‚Â I was also inspired to hound my credit card companies because I was going threw flash cards for my Real Estate Licensing test I’ve got on Monday and once I got to all the different types of mortgages I decided I need to go back to that article on TSD and try it out.
Tip #2: Call your credit card company
According to CardWeb, the average American household has approximately $9,200 in credit card debt, with the average interest rate hovering around 16.5%. Just a quick bit of math shows that a household with the average credit card and credit card debt is paying $1,518 in finance charges a year. ThatÃ¢â‚¬â„¢s a lot of dough.
Fortunately, thereÃ¢â‚¬â„¢s a very simple tactic that anyone can use to reduce those finance charges a bit without damaging your credit report. All it takes is a few minutes on the phone and suddenly your finance charges will be steeply lowered. HereÃ¢â‚¬â„¢s what you do.
1. Take your highest interest credit card, flip the card over, and dial the customer service number on the back. Wade through their phone menu until you reach a customer service representative.
2. Ask to speak to a supervisor. At nearly all credit card call centers, the people who first answer the phone have no power to do anything at all.
3. Tell the person that you are having difficulty making payments on time and you are seeking a rate reduction. Usually, most supervisors will approve this request immediately and drop your rate by 5 to 7%, because itÃ¢â‚¬â„¢s more cost-effective for the company to drop the rate than have to deal with a customer who may be making late payments.
4. If the supervisor refuses to budge, indicate that you are looking into debt consolidation, whether or not you actually are. Mention the possibility of transferring the balance to another card with a low introductory APR. Again, rather than facing the potential loss of income due to a complete payoff, the supervisor will often reduce the rate at this point.
5. If the supervisor still wonÃ¢â‚¬â„¢t budge, hang up and call back another time of the day (if you called in the morning, wait until the evening, and vice versa). Some supervisors are simply unwilling to reduce rates for any reason, while others are much more willing.
That is a portion of the original post at TSD the info above…Ã‚Â Now koodoos to him for posting that and sparking the interest (no pun intended) in me, but now heres where the actual inspiration for you to do it should be given…Ã‚Â For the long and short I took a 28.33% interest rate card and got that baby WHACKED almost in half to 18.24%Ã‚Â Sidenote remember to document, Document, DOCUMENT!!!Ã‚Â I used notepad to type out the information below while I was on the phone, trust me they won’t care if you burn of bit of their time thats what their job is.Ã‚Â Also I think the typing I was doing while I asked “What was your name again, type type type” was probably a bit intemidating they seemed a bit nicer when I knew they could hear me typing it all out (GO FIGURE)…
Card #1 Paypal Providian Visa
Paypal Visa Card
Before I start this call my interest rate is 28.33%
charly – 2:12pm – 02/24/2007
Joanna – 2:27pm – 02/24/2007
- Reviewing account (Told her I will be cancelling the card this week
and that I spoke with a credit counceling agency and wanted to see if I
could get any help before I cancel the card this coming week.)
- Slighty higher than 18.24%
- “Asked if there is anyone I can thank for Charly and Joanna’s help”Ã‚Â
Reply Joanna (Floor Supervisor) transfering me to ??? (Account
Andy – 2:34pm – 02/24/2007
- “Told Andy I wanted to thank Charly, whom helped me through the
process of getting to a supervisor and also would like to thank Joanna
the supervisor I was able to speak with.Ã‚Â She helped me with my
Interest Rate by reviewing my account and was able to get it lowered. ~
Ã‚Â So I would like to congradulate or send koodoos to both Charly and
Joanna.Ã‚Â If I could I would also like to send a personal letter to
someone higher up if I could tell about my experience.”
Washington Mutual Corespondence Department
PO BOX 660509
Dallas, Texas 75266-0509
Ok now for the second credit source.Ã‚Â This is a Line Of Credit I got with my dad to pay off some other things.Ã‚Â I knew I was pushing my luck on it because my credit score is currently 503 thanks to a Stormpay.com scam, but figured what the heck.Ã‚Â I’ll try it anywaz.Ã‚Â If my score was a bit higher (Around 680 or better score <–My info not his)Ã‚Â he did tell me I would have gotten some percentage points knocked off.
(Rep who answered the phone) Malina – 3:10pm – 02/24/2007
- Transferring me to Credit Department
~~~To start this one off my interest is 15% (14.15%) it is a little
different but I don’t have the statement with me my dad does he was the
cosigner on my line of credit and it goes to his address.~~~
- I think they forgot about me…
John – 3:16pm – 02/24/2007
“Told him I wanted to see if there was anything I could do with my
credit score he told me it was currently extremely low at least for
them it was 14.15% (Thats why I edited the above info from the
beginning).Ã‚Â I would have agued but I know that my banks lowest
interest rate is actually 11.95%, since I’ve got horrible credit thanks
to a Stormpay.com scam I didn’t push my luck and just said thanks for
your help and hung up.
~~~By the way I asked John if he was a supervisor and he told me that
yes infact he was.Ã‚Â I think I got transfered directly to him because I
said I had an issue with my Line Of Credit.Ã‚Â You get a better level of
service when its a loan type product vs credit card… ~~~
Alright welp that is my story…Ã‚Â If you have any questions please feel free to comment and I’ll help all I can.Ã‚Â Or give any suggestions I’ve got.Ã‚Â Also if you accomplish get any lower and document it as I did feel free to post your triamph over the credit card companies!!!Ã‚Â So we can all pat you on the back for your 10 minutes of effort to save you a couple GRAND!
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