Credit Card 101 - Part 4

Final MISSION

HERE IS WHAT WE PROMISED-Cash in your pocket!!

Assignment 3 Ask your credit card company to lower your interest rate and put money back in your wallet!! By lowering your interest rate you will make smaller payments and pay less in the long run for things that you charge. (Printable Instruction for lowering your interest rate)

Steps to lower your interest rate This has worked! Out of 400 students who participated last year they lowered their interest rate by an average of 8%. The highest lowered their rate by 11%!!

STEP 1: Do a little research and find another card that offers 0% balance transfers and no annual fee. Then find out what the interest rate will become after the initial (oftentimes, 6-month) period. Look for solicitations in the mail or contact local banks. You can even contact either Visa or MasterCard and ask for a list of preferred issuers

STEP 2:Call your current card's customer service department and inform them that you are planning to cancel the card because their interest rate is too high. You will probably be transferred at that point to an agent whose whole job it is to convince you otherwise. Another point you can make is for them to consider your payment history and longtime customer relationship.

STEP 3:While talking with this agent, be firm -- tell the agent you are planning to leave, but would consider staying if s/he offers you a drop in the interest rate. Do not tell them what the other card is -- they are armed with reasons why that is a bad card for you, and that's not the conversation you want to have with them. Stay focused on the issue of lowering your current rate.

If the agent goes for it, great. If not, great too -- move to the other card. The first one does not apparently value your business. If your request is denied, the company is required to give you an explanation in writing. You are also entitled to a free copy of your credit report. Your denial letter should explain how you can obtain this. If it does not, contact the credit card company directly and ask for assistance.

STEP 5: Do not hesitate to fill out forms and send them in to apply for other credit cards if the one you have does not want to work with you. This process can be done usually in less than two weeks.

Tips & Warnings: Read the fine print - these "lower" rates may be introductory rates only, meaning they only last for a short period of time, after which your rate will jump up. Maintain a good credit history. Credit card companies generally reserve the lowest interest rates for customers with the strongest credit histories.

IMPORTANT-When you are done please go to post test. If you attempted to get your interest rate lowered tell us your story at the feedback. (Link) Tell us how much money you put back in your wallet! Thank you for participating. We hope that you have saved yourself some money and learn something along the way. \

Thanks, Your LCCC SIFE team