How you Can Lower Your Credit-Card Rate

"How you can lower your Credit Card Rate" headlines the personal journal section of the Wall Street Journal. This article makes it sound easy. Just call the card company and tell them that you are going to move your transfer your balance and take your business elsewhere.

This was the meat of this headline article. Well, unfortunately, that is not the whole truth of the matter. Yes, if you have a good credit score, you have options. If your credit score is the 700's there is no reason why you should be paying anything higher than 6% on a balance transfer. The programs are out there. Of course, be careful of the 0% transfers. Those are filled with loopholes.

Yes, you should call them and tell them you are going elsewhere. They don't want your business to go because they know you can move it with ease.

Unfortuantely, it doesn't work that way with a lower credit score. They know that a consumer with a lower credit score does not have transfer options. Thus, there is no incentive to do the consumer a favor.

So, if you are in that unfortunate situation, here are a few tips:

1) Go ahead and call and make the request anyway- you never know someone might just lower it for you and you never have anything to lose.

2) If not, tell them you are committed to improving your credit score and your interest rates. Ask them what needs to happen to lower your interest rates. Some companies will lower your rates based on future good credit behavior. Time ends up being the real cure when it comes to high interest rates!

Above all, never attempt to negotiate the balance of the debt. The only thing negotiable with a credit account that is current is potentially the interest rate. If you ask about the balance, they will consider you a risk and you might end up in collections with a charge-off. I have known that to happen.