Credit Tips: What Can I Do To Reduce My Credit Card Rate?

Posted On: December 20, 2006

Author: Marcus138
Posted: Wed Dec 20, 2006 8:41 pm
Post subject: what can I do to reduce my rate?

Hi, I am new to the forum. I am hoping some of you guys who are more knowledgable then me can give me some advice. I have two credit cards, a small line of credit and a car loan. One credit card with FIA which is pretty much maxed out at 10k with a limit of 10800 at 20% the other is a Chase 2200 with a 3500 limit at 27%. I am not to concerned with the car loan or the line of credit, as mush as I am with the credit cards. I had decent rates, but in August I acidently went over the limit on the Chase card and they jumped my rate and then the other card bumped it up as well. I paid it down right away and I always make my payments on time I usually try to pay more then the minium as well. I called the FIA card a few weeks ago about reducing my rate and they did me a big favor by reducing it .24%. I called Chase yesterday and they said I have the best rate they have right now and said they couldn’t do anything, then I called back a few hours later and got the same thing accept this time the guy said they raised my rate because I had high debt and they sent me a letter saying they were going to raise the rate in June two months before I went over the limit, which I have no memory of receiving. I think my credit score is at 650, which is what I was told when I got my car loan in September. Is there anything I can do to get my rate down? I think I can pay off the Chase card in a few months, but the FIA will take some time. Would it be a bad Idea apply for a new card and do a balance transfer? Any advice on getting my rates back down to a normal range would be much appreciated. thanks, Marcus

Author: Chazmanian
Posted: Wed Dec 20, 2006 8:57 pm
Post subject:

Marcus although there is a large count of Credit Experts on this board I probably fall into the Credit Idiot group. But I can tell you this from my experience so far with these cards….

FIND A ZERO PERCENT 15 MONTH DEAL AND TRANSFER THAT MADNESS ASAP!

That being said is your 650 score a certainty? there are some companies out there right now with some fairly attractive deals as long as your score and income support the large intial limit that you so badly need. I would suggest BOA or even one of the credit union cards with at least a better rate than you have now. USAA, NASA Fed CU, Etc..Etc.. all give large intial lines of credit. I recently applied for a NASA Fed Card and was approved for 20K, that when my score was in the 675 range. The rate there is 9.9% or so.

20% is just insane in todays competitive card market.

You wont really know until you try.

Author: Brammy
Posted: Wed Dec 20, 2006 9:00 pm
Post subject: What Can I Do To Reduce My Credit Card Rate?

You may not be able to trransfer right not with that utilization. The higher your utilization the harder it is to pay down after the rate jacking. I would suggest freezsing he cards in a Tupperware container and usually after making you payments on time for 6-12 mos, the rate will come back down. Just don’t use them again until its under 30% utilization IMHO

Author: Marcus138
Posted: Wed Dec 20, 2006 9:06 pm
Post subject:

That is what the car dealer told me told me when they pulled my credit to give me rates. I didn’t go with their loan I had one ready to go from my credit union that was a way better loan rate. I guess the best way to find out for sure is to get a copy of my credit report. I think I make enough. I have a credit union that I use and they send me mail saying that I am preapproved for 10k. I know that doesn’t mean much until I apply and they look at it. Oh, that reminds me too. I wanted to say that the FIA card also told me that they raised my rate because I wasn’t paying it off fast enough. I don’t understand why they don’t say it was because I went over the limit.

Author: Marcus138
Posted: Wed Dec 20, 2006 9:11 pm
Post subject: What Can I Do To Reduce My Credit Card Rate?

thanks Brammy, I barely use them as it is. The vacation I went on was an acception. I racked most of the debt up while I was in school. Since I have been working full time making decent money for a year. I don’t use them much anymore. I have just been paying things off the past year and its been tough with having to replace my vehicle and other things popping up. I am jsut upset about this I always paid on time and always more, but I went over my limit by 100 bucks and paid it down two days later and they jacked the rate way up.