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Credit Cards
Credit card issuers aren't just going to lower your rate, though.
"The consumer has to be the initiator," says Arnold.
"We advise, every six months, looking at your rate and calling to see if you can get a lower rate. Usually they'll do it if
they think they'll lose you as a customer."
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With the cost to replace you as a customer running around $300, this is one time when the cardholder is holding the cards.
"Hopefully you'll get a lot more bang for your buck from the card -- that's the goal," says Arnold.
You can follow this script when you call your card issuer to make asking
for a lower rate a cinch.
Read the monthly statement
Credit card issuers are notorious for changing the cardholder agreement, due date or mailing address on the monthly statement.
Often the change is contained in a stuffer that you think is a piece of junk. In 2008, get in the habit of looking at each piece
of paper in the monthly statement and checking the details on the statement, too.
In 2007, several House and Senate committees held hearings on credit card practices and disclosures, and the Federal Reserve also
made some suggestions for improvements.
"The Federal Reserve is looking at how statements are structured, to make it easier to understand," says Arnold. "I think you'll
see some changes. Citi is overhauling the look of their statements, to make them more visually attractive and written in simple
English. These trends are starting to emerge -- changes that are beneficial to consumers."
And if one issuer is simplifying their statements, expect others to follow.
Check your credit report
At Bankrate, we tell readers constantly to check their credit reports -- all three of them.
According to a study by Javelin Strategy & Research, 60 percent of consumers hadn't checked their credit report in the previous six months.
"It should be more frequent," says Bruce Cundiff, senior analyst at Javelin. "Consumers are allowed a free one each year.
We advise to get them in four-month intervals -- Equifax in January, TransUnion in May and Experian in September."
Not every lender reports to all of the credit reporting agencies, so the information on each bureau's report may be different.
That's why you need to check all three.
"Everybody should check their credit report. It's a financial statement just like a banking statement," says Rod Griffin, a
spokesman for Experian. "You need to know what your lenders are saying about how you pay your bills. It's also a great tool
for identifying fraud or identity theft. If there's nothing there, fine. But if you see something, you can act on it. You
have a right to know what's in your credit report and you should."
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