"x x x.
1. You can fire them if you want to.
You're still your credit-card company's boss. So if you've been a loyal and responsible customer, you can actually call them up and negotiate your current interest rate. You can tell them about your clean track record – you pay in full and in time – and nicely ask them to lower your interest rate.
Hey, you can even tell them about their competition's current rate! You can say that your new card can offer a lower rate and can even give you freebies such as a free Despicable Me! Minion keychain or a free meal at a nice restaurant.
Tell them you'd really like to keep their card, but if they can't offer you better terms, you might be “forced” to switch. It doesn't hurt to try this.
2. They need you more than you need them.
Competition in this credit-card market is tough – this is why a lot of them display enticing advertisements and give out lots of freebies, right? This is why you get spam emails on credit-card applications. This is why a well-dressed credit-card representative gives you brochures and even asks for your contact information right on the get-go.
That said, if you just do your part and be a great customer, you can negotiate for almost everything!
Yes, you can negotiate your card's annual fee. You can even have it waived.
Yes, you can negotiate a late fee, provided that you've been paying in full and in time every time.
Yes, you can even change your due date to the date of your convenience.
3. The teaser rate isn't going to be permanent.
Getting a credit card is like getting married. At the early stages, you're so happy and so satisfied with your spouse – everything about him is perfect! His hair, his abs, and even his cute dimple on his cheek. After 6 months has passed, then, boom! You think his hair is baduy, his abs are only one-pack, and his cute dimple looks like a worm.
This is the teaser rate that credit card companies give you if you “sign up now.” In the beginning, you'll enjoy low interest rates. After 6 months, when you're already in a fixed contract, they'll increase the interest rate to immense amounts! (Naturally, you can't protest because this is included in the fine print that you never bothered to read because it made your nose bleed).
4. You're allowed to pay only the minimum charge so that your interest will be maximized.
Let's say you have a balance of P 15,000 on your credit card right now.
You can pay only 1% up to 5% of that, because this range is computed as the minimum payment. Therefore, you can just pay as little as P 150 to P 750 only.
Ayos! Deal! You already paid the minumum due so you've paid everything, right?
Wrong.
If you pay only the minimum amount due, the remaining balance will be carried over to the next statement.
So, if you've paid P 750 right now, you still have a loan of P 14,250, yes?
No.
You will also be charged another interest on the remaining balance.
The more minimum amount you pay, the higher your total payment will be in the future.
If you can afford to pay the total balance in full and on time, then go! Enjoy – you can even take advantage of the freebies!
If you can't, then no! You'll get stuck in a difficult debt cycle.
Think twice before you swipe that credit card. Your sanity and wallet will thank you for it.
- Rappler.com. xxx."
