Tuesday, June 27, 2006

It Pays to Discover

I got a wild hair up my ass today. I thought it would be cool to call my credit card companies and ask them when I become eligible for a lower interest rate.

Would you believe that in both cases, they lowered my APR? They further suggested I call back in 6 months to get it lowered again! Who knew???

Now, I don't have the best credit rating on the planet, but I am good at paying the minimum on time I guess. Presumably if I go another 6 months without ever being late, they'll lower the rate again. I swear if I knew it was this easy, I might have called earlier! But being an informed consumer ain't always easy and I never would have guess that lowering my credit card APR was as easy as a phone call.


Anonymous said...

A good payment history gets you a lot from your credit card companies. Good for you.


DBK said...

Never carry a credit balance. Seriously, Jay, lower rate or not, credit cards are the worst debt you can have. The rate is high compared to a lot of other borrowing and the terms are not good and the interest isn't even deductible. Jonathon Pond, who is a famous financial advisor, calls credit card debt the worst debt you can have and he is right. Pay off the cards and do not carry a balance. Pay the balance off every month in full. If you only pay the minimum and incur no new debt, it takes something like twelve years to pay a balance down and what you wind up doing is paying the entire amount several times over before you are done. I advise everyone I know to pay off their credit cards and never carry a credit balance.

jay lassiter said...

i totally agree with you about carrying a balance. my mom taught me well.
i meant to point out that sometimes getting a better deal is as easy as asking for it.
(politely of course!)

DBK said...

Absolutely. You are right. Credit card debt, though, is my hobbyhorse. But yes, the credit card companies will lower their rate for customers who ask and who have good ratings.

Elsa said...

I would have never suspected that credit card companies would lower your rate just by asking. Good for you!