February 3, 2006, Newsletter Issue #2: Possible Ways to Reduce a High Interest Rate to a Low Interest Rate

Tip of the Week

Getting a credit card company to reduce a high interest rate to a low interest rate is harder to accomplish than many people think. Once a low interest credit card's interest rate increases, it will take an extensive period of on time payments, zero penalties, and healthy charging on other accounts to get a credit card company to consider decreasing a high interest rate on a credit card. The best thing to do is maintain a healthy credit score at all times so the consumer does not run the risk of receiving an increase in their interest rate. This is not always easy to do and that is why many consumers do experience frequent interest rate changes for the worse. The consumer can try calling their credit card company to see if they will reduce the interest rate as a one-time courtesy if the consumer has had a good payment history with them and the credit card company may grant it to them. Even though the credit card company has no obligation to the consumer, sometimes if the consumer speaks to them on a personal level about what is occurring in their life to have caused a late payment the credit company might be willing to work with them. Of course, those who have bad credit already should expect to receive high interest rate credit card offers and typically these kinds of credit cards monitor the consumer’s credit on a regular basis with the intent of rewarding the consumer with a lower interest rate or an increase in credit.

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