Sunday, April 26, 2009

Facing a credit card rate hike? Here's how to talk it down

If your credit card company has hiked your rate and you can't pay it off immediately, one option is to call the issuer and ask for a lower rate, particularly if you've been a longtime customer.

"Say, 'I've been a customer for X amount of time, and I'm looking at competitive offers,' " said Bill Hardekopf, chief executive of LowCards.com, a credit card Web site. " 'I'd like you to roll it back to X rate.' "

Credit card companies don't want to lose customers because "the acquisition cost is too high," he said.

In 2006 the Tribune published a script in a story by Gregory Karp aimed at helping consumers negotiate a lower credit card rate. This reporter successfully used it to bring down the rate on a credit card to 9.99 percent from 24.99 percent.

It goes like this:

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