How To Get The Best Rates On Your Current Credit Cards
So you’ve got a few credit cards, and youre quite happy with them overall. Still, wouldnt it be nice to save a little money on interest? It all adds up over time, and more quickly than youd think. If youre a good customer, youd be surprised how easy it is to get a better rate.
Pay on Time, But Not Everything
The most desirable customers for the credit card companies are the ones who make a payment on time every month but dont pay off the whole balance. After all, running no balance every month means that you pay no interest, and the company makes no profit. If you keep up the pattern of running a relatively small balance each month, then the companies will start falling over themselves to offer you better interest rates.
Threaten to Go to Their Competitors
Have you ever noticed that it seems like every company offers a credit card? That makes the credit card industry extremely competitive. Collect ads and offers for better rates than your company has given you, and then phone them up and tell them all about it. A good rouse is to start the conversation like this:
Them: Hello, what can I do for you today?
You: Oh hi, I was just calling to ask if theres anything that you need to do to transfer my balance to this new card Im getting?
Them: Well may I ask what card that is?
You: Oh, I got the offer in the mail this morning. [Tell them all about the great interest rate and everything. You could even make things up they wont know].
Them: And you’ve accepted that offer?
You: Im just about to, yes.
Them: Well, hang on we might be able to offer you a better rate on the card you’ve got
The trick is in getting the company to think youre just another fool who responds blindly to advertising, and theyre in danger of losing you as a customer. Dont whine about how youre such a good customer. They already know what kind of customer you are, but they definitely want you to stay their customer.
A fun alternative is to phone your current company, get an offer from them, and then phone around more and try to get them to beat it. Once its beaten, call your company back and let them know. Drive a hard bargain, and be prepared to walk away (well, hang up). If you turn down their so-called best offer, hang up and wait half an hour, theres a good chance that youll get a call offering you a better one!
It isnt just on credit card companies that these tricks get results. It works because it costs a company so much to get a new customer (the cost of acquisition), and so its cheaper for them to offer you a better deal, just to keep you. Try it with your Internet Service Provider (ISP) sometime.