Credit cards - to negotiate or decline

iVillage Member
Registered: 01-12-2009
Credit cards - to negotiate or decline
6
Tue, 02-17-2009 - 2:30pm

I searched and did not find my exact question.

Avatar for meandmypea
iVillage Member
Registered: 03-27-2003
Tue, 02-17-2009 - 2:48pm

We didn't decline any of the terms of our cards. We tried to negotiate with Discover (we have had our card since 1998 and never once been late on a payment with them), but they wouldn't reduce the rate. So instead, we transferred as much as we possibly could to other cards that had a low fixed rate balance transfer offer - 0% to 3.99%. We had gone to a credit counselor, and we're getting a better rate doing it that way than even the credit counselor could offer, and saving our credit in the process. Our payment history is flawless, we just have a high amount of debt. Now, the upfront cost of doing it was kind of pricey with the 3% fees, but at least we have peace of mind that we won't be trying to pay off $30,000 of credit card debt at 25% APR or higher.

Now, we did all this in August and September before the credit market imploded, so I'm not sure how accessible low fixed rate balance transfers are anymore, but it may be an option that is worth considering.Bridget

Edited 2/17/2009 2:50 pm ET by meandmypea




Edited 2/17/2009 2:51 pm ET by meandmypea
Bridget
iVillage Member
Registered: 12-21-2004
Tue, 02-17-2009 - 2:52pm
If you transfer an amount to a low fixed rate - there is no way the credit card could raise that rate is there?
iVillage Member
Registered: 11-17-2007
Tue, 02-17-2009 - 3:41pm

I have been out there looking for cheap money and the only thing I could come up with on any of our cards in a 6 month 0% percent interest which will not help. Rest were 9-11%


I did learn one thing the cards that we have with a low interest rate for the life of the loan

Avatar for meandmypea
iVillage Member
Registered: 03-27-2003
Tue, 02-17-2009 - 4:01pm

The fixed rate is fixed for the life of the transfer. It will state in the terms whether the balance transfers are exempt from the rate increase (they usually are). BUT - if you are late even one time, that will negate the terms of the balance transfer contract, and you automatically get bumped up to the default rate. So you have to be very watchful if it's a card that specifies that the payment has to get there before a certain time of day on the due date - like 1 p.m. - to make sure that you get the payment posted early enough.

I don't see the balance transfer offers in the mail like I did 6 months ago, so we were probably lucky to get what we did.

Bridget




Edited 2/17/2009 4:02 pm ET by meandmypea
Bridget
iVillage Member
Registered: 12-29-2008
Tue, 02-17-2009 - 7:12pm

I haven't looked for a few weeks, but there are still 0% balance transfers floating around out there.

iVillage Member
Registered: 03-17-2003
Tue, 02-17-2009 - 7:30pm
I too would close the account with an unpaid balance.