How to achieve a balance transfer to reduce high interest? (credit card debt, loan)

[cinder26]

I am someone with good credit in that I have never missed a payment on any credit card. However due to a former job, broken promises and poor planning I am now stuck with high credit card debt.

13.5k on one card with 19.95% interest
5k on another card with 13.99% interest

I have stopped using both credit cards and look only to pay them off as soon as possible. I now have a better job and much less expenses and therefore could afford to pay 1 to 1.5k a month in addition to the minimum payment on these cards.

My question is how to pay a lower interest rate? I have tried speaking with the credit companies and they will not lower the interest rates.
Therefore it would be great to do a balance transfer to another card with a lower interest rate or even better yet an introductory 0% APR. However no new credit card companies will issue me more credit because I am already so leveraged.

Where do I go and how would I explain to them that I am simply looking to pay a lower interest & stop using the cards all together so that they will accept me for a high enough limit – at which time I simply cancel the other cards?

You would think the credit card companies would be interested being that I am never missed a payment in years (regardless of how high it was) and they would simply be enjoying the interest payments rather than the current card although lower, it shouldn’t matter to them.
Where do I go? Any suggestions in lowering the amount of interest I am paying?

Much appreciated!

[Karla with a K]

Cinder26
When you called to ask for a lower rate what department did you speak with ?
The folks in Customer Service really can't reduce your rates.

Calling to get lower rates is in my top 10 fun things to do list.
I do it for friends and family members (they get on the phone to give permission) some cards are easier to work with than others

These are some of the things I do .

1. Make sure you are speaking to a call center here in the U.S.
2. Ask for the "account retention dept" be insistant
3. Tell the AR person you have been offered a "balance transfer" from another card (I like to use the 8.99 rate)and considering your long term relationship with them you would like to give them the chance to keep this relationship.

Worse case scenarios((I have run across this a couple times) the "AR" associate has said that because there has only been the minimum payment made they are unable to lower the rate or the balance maybe to close to the credit limit.

If this is the case you then tell them "if I am able to double the minimum payment and get the balance lower will that help to reduce the rate"

You mentioned being able to increase your payments by $1 to $1.5 k. I would pay an extra $500 to the $5k account and the $1k to the $13.5k account.

You may have to make a few payments at the new amount to get a "payment track record" and lower balance and have it re-reviewed in 3 months.

At this point, if they still say no you have reduced the balances enough that you maybe eligible for a BT to another card.

p.s. if you want you can DM me the names of the credit cards and I can let you know if I have even come across them in my "lower the rate" calls

[cinder26]

Thank you very much, this is great advice. The card with the higher balance and rate is First Financial Bank - when trying to lower the rates they say that it is a 'student credit card' and because it is their first time offering and the only card they offer they were not able to lower the rate. I asked if I paid more in the next month or so if I would have more 'leverage' when asking for a lower rate but they said I am not on a penalty rate it is just the lowest they offer. Though I will try your advice.

Another question though is, how do I go about asking for a balance transfer from another card? I tried this with Capital One and I needed to go throught the whole card application to see if I was approved, I was then for only $750 limit so I cancelled before it was processed. Where are good places to go to ask for an offer for a balance transfer?

Thanks again

[Refugee56]

I have made $1000s of dollars on those balance transfer checks through the years. I cash the check, invest the money, pay the minimum balance each month, and then pay off the card before the 0% interest ends in 6-12 months. Then pocket the profits.

Type in "credit card arbitrage" in Google for more info.

[70Ford]

Go to your bank.

Get a consolidation loan.

Click this link...then read the first line of the wikipedia entry...wait.. I'll post it here.....
consolidation loan wikipedia - Google Search

Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.

I don't think you'd have a problem getting a loan...from what you've said here....but I don't know your credit score, either.

How do I know about it? Glad you asked. Because I've done it.
The bank will give you a loan and make checks out to your card companies....yep, no money in YOUR hands...ha ha!

If I remember right, I had to close the accounts, too. But that was like in 1995 and my brain is foggy....oh well. Good luck!