Many consumers are finding out that interest rate they are paying on their credit cards has increased due to changes to bank policies. Even people with a good credit history and credit ratings are being impacted by these changes to the terms of their account.
Banks and credit card issuers are trying to minimize their losses and regain income. Unfortunately for many of us, they have discovered that maybe the best way to do this is to increase the interest rates, fees, and penalties on credit card bills that good customers are paying. They are even impacting people with a higher credit score as they are the one who can afford to pay higher interest rates and fees.
The good news is that if you don't have a balance on your credit card, you shouldn't run into problems with the new fees and regulations.
Unless you have excellent credit scores, it is very hard to get a new personal loan or credit card, and especially one at an interest rate that doesn't make your wallet or pocketbook cry. It is therefore more important than ever to keep your credit score healthy and improve your credit scores. Find ways to do this. More.
To get a new credit card, or to lower your interest rates, the key is to know how the credit industry and banks operate because they know all about you.
Many credit card companies report your unpaid balance to the credit-reporting agencies, then they mail you your bill. That is the order that they take.
Then, while you are still making your payment on time for that new bill, the agencies are reporting data that shows that you are late or that you have maxed out your card, not that you've paid the bill. So this hurts your credit score until the next reporting period. What you can do to address this is to find out when your bank or card company sends its monthly report to the credit reporting agencies and then send your payment on your bill before that date.
Another key to getting the lowest credit card interest rates is to control and lower your debt-to-credit limit ratio. The best deals go to those who do not have over 20 percent debt to credit-limit ration.
Additional tips for how to lower your interest rates and get the best credit cards.
-Pay all your bills and debts on time. If you have record of a debt collector or collection agency on your credit report, that is one of the top reasons for a bad credit score. If you ever move, you need to make sure that everyone you could possibly owe any bills to, such as an utility company, doctor, or insurance company, make sure they all have a forwarding address.
-It is not just enough to avoid late payments, but rather you need to get into the habit of paying all your bills - such as car payments and mortgage - before the due date.
-Keep all of your financial and bank records clean as insufficient funds or a bad check will show up on your report and hurt your scores.
-Negotiate and communicate. Whatever the reason you're having trouble with paying your credit card debt, contact the issuer in advance and explain your situation. Negotiating is key, but there are some ways to be more successful. How to negotiate.
-As part of this process and negotiations, ask if they can knock off the interest you pay for for six months. Many companies will try top help. Be sure you get any deal in writing.
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