Category Archives: Loan Tips
Can You Ask Your Credit Card To Lower Your Interest Rate?
If you think that the interest rate of your credit card must be reduced, dont just sit there and wait. Credit card companies wont volunteer to lower your rate if you wont ask them to. Surprisingly, a recent study reveals that 57% of credit card holders simply phoned in their requests and were granted a lower rate without any difficulty. So if you think youre a good candidate, pick up your phone and speak out.
Why Ask for a Lower Rate Lowering your interest by even just 10 points or less can bring huge savings to your budget. Just imagine bringing down your 19% interest to just 10%. Now certainly, that makes a big difference. Although it should be your goal to pay off your balances in full each month and avoid the interest altogether, there may be instances when you have to carry over your balance. Reducing your interest rate protects you from the risk of bad credit.
Are You a Good Candidate? Nevertheless, credit card companies wont just lower their rates for anyone. Are you a good candidate? First, check your credit report and gauge your credit rating. If youve been consistent in submitting your payments on time to all your creditors, you should have problem maintaining a high credit score. Paying off your monthly charges in full also makes you an ideal customer for creditors.
Your debt to income ratio may also be considered. How much do you spend each month and how does this compare to your earnings? Do you frequently carry a large amount of charges on your card? Do you often maximize your cards credit limit? Financial experts recommend not using more than 40% of your given credit. Using more than 505 or worse, exceeding your credit line would make you a high-risk borrower in the eyes of creditors.
Also, you need to consider the type of credit card you have. If youre using a secured credit card or a bad credit credit card, you may not be in the position to demand for reduced rates. Since youre regarded as a high-risk borrower, you cant expect your credit card company to reduce your rates just because you asked them to.
What to Say If you enjoy an excellent credit history, theres no reason why you shouldnt deserve a lower rate. The question is, what should you say to your credit card issuer? What points can you use to convince your credit card to reduce your costs?
One strategy is to research about the interest rates that other credit card companies offer. Based on your research, compare them with your credit cards rate and use this argument to request for a lower rate. You can also point out that youve been a long time customer (and a good payer at that!) and that youll like to stay within their company but that other credit cards seem to offer a better deal. Ask them if they could match that offer.
If the person you talked to insists that it is not in their power to make adjustments on fees, ask to speak with the supervisor. If your request is initially rejected, dont lose hope. Call again after a month or two and see if theyll be more agreeable to your request. While waiting, continue to improve your credit score and youll have better chances of getting a positive answer.
Loan Advice Available 24 hrs a day. 7 days a week.
Carlyle Finance, the UKs fastest growing independent Motor Finance Provider, launch their new loan advice web-site, branded as carloanadviser for the consumer and known as Virtual Business Manager to the Motor Dealer.
The website, which Carlyle has devised and developed in the UK (the company is part of a South African group), will offer car loan advice to the car buying public by demonstrating the various pros and cons of the various methods of funding a new car. This is done via innovative video and quotation technology.
Carlyle is already preparing to trial the use of finance booths in showrooms so that car buyers can consult the website themselves, in the showroom.
In its approach to dealers, Carlyle Finance stress the potential of benefiting a dealers profits by increasing finance sales and improving their levels of customer service and brand.
A Carlyle Finance spokesman said: “The VBM provides a dealership with online access to expertise in motor finance and car loan advice to help its customers arrange the finance deal they need to acquire their car.
“The dealer will be in control of the rates and terms and the online business manager will work to the parameters agreed with the local Carlyle Finance Account Manager.”
He said customers could manage their own proposal process online, either in the showroom or in their home. They keyed in information about their chosen car and followed prompts to identify their own ideal finance package.
Karl Werner, VBM project leader at Carlyle Finance, said: “For many dealerships there is a real role for a business manager, but many showrooms simply cannot justify the investment.
“Many customers browse online whenever they wish to find a car, he said. “Now they can sort out their finance with a dealer while discovering their car.”
Werner said VBM puts the customer in control so they can discover new financing options for themselves. All the dealership has to do is direct their customers to their website link. “We believe the benefits are significant,” he said. Customers can gain a huge amount of advice about what car to buy from numerous sources. However, the key challenge for many is gaining loan advice so to pay for their new car The carloanadviser website, or VBM as its known to the dealer, can illustrate the options to the customer any time and anywhere.