Dirty Little Secrets of the Credit Card Companies Part 2
Credit card companies make money on both ends of the transaction.
They not only collect a transaction fee from the merchant, but interest fees from the purchaser -- you.
But, knowing the secrets they don't want you to know can literally save you thousands of dollars.
Ask and You Shall Receive Do you think you're stuck paying high interest rates? Maybe you went beyond the introductory period and ended up with a higher interest rate than you anticipated.
Maybe you missed a payment or two and are now paying 19%, 20% or even 30% interest (been there, done that).
It might surprise you to find out that you can negotiate a better interest rate.
How? You just have to ask.
Credit companies invest a lot of money in finding new customers.
The last thing they want to do is lose them! You can use that to your advantage.
If you've been a good customer, call and remind them of that fact - then ask for a lower interest rate.
If they charge an annual fee, you can ask them to waive that as well.
Now, I define a "good customer" as one who pays his or her bills on time.
If you don't fit into that category, you may still be able to get them to lower your rates, but it won't be as easy.
If you are told "no", ask to speak to that person's manager.
Let the manager know that you would like a lower interest rate or you will transfer your balance to XYZ Credit Card Company.
It's cheaper to keep a customer than to find a new one.
So, you should be able to win this negotiation without too much trouble.
Now for my disclaimer, I'm not a huge credit card fan.
Since every bank and credit union issues a debit card that can be used as a credit card, I think you can get by just fine without going into debt.
And, if you have an emergency savings fund, you don't even have the excuse of needing a credit card for emergencies.
Playing with credit cards is a lot like playing the slot machines.
If the casino didn't win more than it paid out, they wouldn't be in business.
Too many people have the best intentions when it comes to credit cards, but then life happens.
So, it's best to not have them, but if you do, being aware of these dirty little secrets can save you a bundle.
They not only collect a transaction fee from the merchant, but interest fees from the purchaser -- you.
But, knowing the secrets they don't want you to know can literally save you thousands of dollars.
Ask and You Shall Receive Do you think you're stuck paying high interest rates? Maybe you went beyond the introductory period and ended up with a higher interest rate than you anticipated.
Maybe you missed a payment or two and are now paying 19%, 20% or even 30% interest (been there, done that).
It might surprise you to find out that you can negotiate a better interest rate.
How? You just have to ask.
Credit companies invest a lot of money in finding new customers.
The last thing they want to do is lose them! You can use that to your advantage.
If you've been a good customer, call and remind them of that fact - then ask for a lower interest rate.
If they charge an annual fee, you can ask them to waive that as well.
Now, I define a "good customer" as one who pays his or her bills on time.
If you don't fit into that category, you may still be able to get them to lower your rates, but it won't be as easy.
If you are told "no", ask to speak to that person's manager.
Let the manager know that you would like a lower interest rate or you will transfer your balance to XYZ Credit Card Company.
It's cheaper to keep a customer than to find a new one.
So, you should be able to win this negotiation without too much trouble.
Now for my disclaimer, I'm not a huge credit card fan.
Since every bank and credit union issues a debit card that can be used as a credit card, I think you can get by just fine without going into debt.
And, if you have an emergency savings fund, you don't even have the excuse of needing a credit card for emergencies.
Playing with credit cards is a lot like playing the slot machines.
If the casino didn't win more than it paid out, they wouldn't be in business.
Too many people have the best intentions when it comes to credit cards, but then life happens.
So, it's best to not have them, but if you do, being aware of these dirty little secrets can save you a bundle.
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