Credit cards - to negotiate or decline
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Credit cards - to negotiate or decline
| Tue, 02-17-2009 - 2:30pm |
I searched and did not find my exact question.
| Tue, 02-17-2009 - 2:30pm |
I searched and did not find my exact question.
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
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
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
I haven't looked for a few weeks, but there are still 0% balance transfers floating around out there.