Is there anything in it for credit card companies to reduce my interest rate?
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1. Hire The Best Debt Settlement Company
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I'm in the process of paying down my debt and it would be nice to do it at a more reasonable interest rate. Basically all of my cards are in the 20% range and i've been told you can negotiate a better rate. My score is in the mid-600's and all accounts are in good standing. Does anybody have any history of successful negotiation in a similar situation, and if so what's in it for the company to do so?
If you had good credit you could get a card with a 0% (or very low) balance transfer….I don't think a mid-600s FICO score will qualify you for such a card. I think that you have to have a decent score to have a good bargaining position….i.e. If you have a 720 score with balances like you have at 20% interest, you can write a friendly letter to your banks telling them that you will happily balance transfer and close out the accounts if they cannot offer a more competitive interest rate.
With your FICO score it's tricky….If you call them and request a reduced rate…the card company could panic and close your account and/or raise your rate.
CCCS can reduce rates….but this involves being involved in their debt management program and this has some negative factors…..like you have to cut up your cards….Also, your credit report will be updated to show that you are in a credit counseling program and this can greatly affect your ability to get a mortgage or car loan.
If you don't plan on getting a mortgage or car loan in the future, CCCS might be one option to pay your debt down.
STAY AWAY from any debt reduction service you see advertised on TV.
June 24th, 2009 at 5:24 pm
If you have a good payment record, you may be able to get some reductions by threatening to close the accounts. I've seen it work before.
References :
June 24th, 2009 at 5:43 pm
If you had good credit you could get a card with a 0% (or very low) balance transfer….I don't think a mid-600s FICO score will qualify you for such a card. I think that you have to have a decent score to have a good bargaining position….i.e. If you have a 720 score with balances like you have at 20% interest, you can write a friendly letter to your banks telling them that you will happily balance transfer and close out the accounts if they cannot offer a more competitive interest rate.
With your FICO score it's tricky….If you call them and request a reduced rate…the card company could panic and close your account and/or raise your rate.
CCCS can reduce rates….but this involves being involved in their debt management program and this has some negative factors…..like you have to cut up your cards….Also, your credit report will be updated to show that you are in a credit counseling program and this can greatly affect your ability to get a mortgage or car loan.
If you don't plan on getting a mortgage or car loan in the future, CCCS might be one option to pay your debt down.
STAY AWAY from any debt reduction service you see advertised on TV.
References :