How I cut my credit card rate in half
I decided to take the advice of fellow blogger and Mom on Money Madhavi Acharya- Tom Yew and tried to negotiate a
lower rate on my RBC VISA credit card.
I didn't have a balance on the card when I called but over the years, I've charged tens of thousands on this card. My current balance was zero. My only leverage was to cancel my card if they wouldn't help me and when they turned me down, that's what I did.
The card I canceled carried a 24.99 per cent interest rate. The rate had gone up from 19.5 per cent because I missed two payments in the last 12 months. I didn't actually pay the higher rate because I didn't make that same mistake a third time.
I asked the agent for a lower rate because I had been a customer for 25 years with a good credit rating who had missed two payments with very low balances (under $200) simply because I forgot the due dates. They were paid in full within days. Recently, however, I charged $4000 on the card, and paid it in full, on time, two days before I called for a lower rate. When the agent held firm, I canceled the card.
I have a second card, a no-fee, Airmiles BMO Mastercard. I made the same call and asked them for a lower rate. I've been a customer for 10 years and have no other accounts with them. It has a 19.5 per cent rate Immediately, I was offered various deals, including one where I could pay an annual $20 fee and have 12.5 per cent rate which isn't bad.
Read the full article
here.