How to get a better deal on your
credit cards
By Bankrate.com
If the only offerings in your mailbox are from
credit card issuers who want to charge you an annual fee and a 24.99
percent interest rate, you need help.
For their very favorite customers
-- those with perfect credit, a high income and big balances --
the credit card companies will do a lot better than that number.
These customers get offers for cards whose permanent rate can be
as low as 7.99 percent -- and no annual fee.
You may not reach that status right away, but
there are steps you can take to push your rating up a notch and
get a better offer. Here they are:
- Only time -- and on-time payments -- will
make a difference if you've had a history of late payments. So
start with several months of on-time payments, even if all you
can afford is the minimum payment.
- Check your credit reports to make sure that
they're accurate. You want to make sure you don't look any worse
than you really are. For more details, check the Bankrate.com
step-by-step
instructions.
- Next, call your existing lender. They're
no doubt happy that you're paying their bills on time, but won't
call you to offer a lower interest rate. You need to call and
ask.
- If they say no, it's time to shop for a better
offer. You can, if you're careful, transfer
an existing balance to your new card.
- Once you've started becoming a better customer,
the card offers will start pouring in -- and your existing company
will start raising your limits, without you asking. Think carefully
before accepting, and set
your limit carefully. Too much unused credit actually counts
against you when you apply for other loans. A mortgage lender,
for example, will hesitate at making a loan to someone who could
go quickly and deeply into debt.
- Even if the offers are good ones, don't try
for too many cards too soon. Multiple applications for credit
also look bad on your credit report -- and if you're successful
in getting more credit, you'll be tempted to dive back into debt.
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