Credit Footprint Improvements Prior to Rate Negotiations
This is our fifth part in our series describing the steps that you can utilize to prepare for a future Credit Card Rate Reduction.
Today we are going to focus on three areas. Reviewing your total footprint on the credit card company you will negotiate with, transferring balances to ‘balance’ your debt load percentages and avoiding the balance transfer trap.
Total Foot print with a Bank or Credit Card Company
If you have more than one account with the same bank, review those accounts as well. With the mergers and consolidations it is not unlikely to have multiple accounts with the same company. Review the big picture of your relationship with this bank and discuss it with the agent on the phone.
Rebalance your debt burden so that none of your credit cards have balances in excess of 80% of your Credit Limit.
Consolidate your debt utilizing balance transfers. Move your outstanding balances to your cards with both:
- A low fixed or adjustable rate before the balance transfer incentive, and
- A good balance transfer incentive
Avoid the Balance Transfer Trap
Do not transfer your balance to a card with a teaser transfer rate when the normal fixed rate is higher than the card you are currently paying today.
It’s a trap. The credit card companies are counting on consumers to screw up and borrow more at higher rates. There is a reason why they offer those rates and its not to get your business, its to get your business plus interest. They know they will profit from you in the long run.
Don’t skip a payment on a card just because the balance transfer covered your minimum for the month. Pay anyway. It lowers your total debt balance which is good!
For More Information see:
Part 1: Prepare Before You Call Your Credit Card Company for a Better Interest Rate
Part 2: Credit Curb Appeal for Credit Card Rate Negotiations
Part 3: Paying Down Debt Positions a Better Rate Negotiation
Part 4: Researching and Scripting the Pitch to Lower Your Credit Card Rates
