Credit Tips: Can a Closed Credit Card Account Rate Be Negotiated

Posted On: February 1, 2006

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Posted: Tue Jan 11, 2005 11:45 pm
Post subject: Can a Closed Credit Card Account Rate Be Negotiated

Cindy Morgan
Date: 8/29/2000 11:56 pm CDT

We’ve gotten in deep water with credit cards and have cancelled 3 of the
4 cards we own. But now I am wondering if there is anything we can do
about lowering the apr of the closed accounts. Do credit card companies
ever change the rates on accounts that have already closed, or do we
have to pay the balance at the high rates?
I also would like to know if there is a way to get another card simply
for a transfer of balances? We don’t qualify for more credit, but we’d
like to get a lower rate on the amounts we owe.

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Posted: Tue Jan 11, 2005 11:45 pm
Post subject: Can a Closed Credit Card Account Rate Be Negotiated

Board Monitor - CS
Date: 8/30/2000 5:24 pm CDT

Unfortunately, 9 out of 10 credit card companies will not, under any normal circumstance drop the APR on closed accounts. But you still have a few alternatives you can work with to hopefully get the balances paid down…

* As you said, you don’t qualify for any new credit cards - but do you own a home? or maybe a car? You can take an equity loan out on either (although the home is best choice) at a much lower rate than your probably paying on the credit cards.

* Some credit card companies have what’s called a “Hardship Application”. If you are in severe financial trouble, most credit card issuer’s will lower your rate and your payment amount to assist you in paying down the balance. Keep in mind that not many issuer’s offer this, but it doesn’t hurt to ask.

* Seeking the assistance of a Credit Card Counselor can assist you in reducing your payments and interest. Keep in mind that it usually requires a fee for them to try and help you out, and it doesn’t always work, but it’s worth a shot. I’m sure you’ll be able to find a large list of these companies in your local yellow pages.

Those are a few ideas for you to play around with. I would also recommend Alexander Daskloff’s excellent book entitled “Credit Card Debt: Reduce Your Financial Burden In Three Easy Steps”. I personally have read through this book several times. It offers a large variety of solutions and strategies for paying off your credit card debt. You can pick up a copy by visiting his site at (www.creditcardfreedom.com) or by visiting cardratings.org. Just click on “books”.

Take Care!
Casey Smith
http://www.cardrevolt.com