24% APR Crushes Reader To Death
Timothy is getting raped with a 24% APR on his credit card and wants help getting it lowered. He writes:
I have a card with one bank (that I am trying my hardest to pay off ASAP) that is 24% APR. It is killing me. A week or two ago, you had an article about a woman who paid off all her credit card debt over the course of 20 months or so. Good for her and it was a good story. One thing about it had me wondering though. She said that she negotiated with her lenders to get lower interest rates on her cards. How do you suggest I do that?
Here's what:
24%?! Good god man, get the heck out of there. You tell them to lower it or you're transferring the balance to another card with a better rate and canceling the account. Find a better credit rate at billshrink or bankrate. You may even qualify for an 0% balance transfer.
Here's what you say:
"I think I've been a good customer. I'd like to stay with you, but I really want you to lower the rate on my card. Can you help me?"
If they say no, ask to speak to a supervisor and say the same thing. If they still say no, plug in your research into the following statement:
"____ and ____ and ______ credit card companies are offering me rates of ____ and _____ and _____. Can you match them or do better? Otherwise, I think I might have to take my business there. I really want to pay off this debt, but it's hard to get ahead with the interest rate you're charging."
Skeptical? CBS News approached 10 random shoppers in a mall and had them read the first script. 6 of them were able to get their rates lowered right on the spot.
(Photo: Getty)
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Comments:
Raped = not an acceptable verb when speaking about... an APR.
I have asked to have my APR lowered on my 2 cards a few years ago but to no avail. They are 20% and 21.9%. I am one of those people who has paid on time and in full for 10 years but I would like it lowered just for the sanity of knowing in case something happens, i'm not completely being screwed by the credit card copmanies. Of course consumerist had an article a year or so back telling about how i'm considered a deadbeat in the eyes of credit card companies because they make no money off of me and they'll do less to appease me. They probably would me more than happy to have me close the account and go elsewhere.
I'm interested to know whether this trick will work in the current credit market. With banks pulling back on their lending can you really get a 0% transfer or a better rate these days?
Fuck 'em -- at 24% I wouldn't negotiate anything, just try like hell to get another card at a cheaper rate and transfer the balance.
@bravo369: If it's paid off in full there should be no harm in finding a better rate/limit elsewhere and just cancel the card.
@GavinEstecado: I'm not particularly sensitive about that sort of thing, but even I think it's a little innapropriate.
-noun
1. the unlawful compelling of a person through physical force or duress to have sexual intercourse.
2. any act of sexual intercourse that is forced upon a person.
I had a card once that got up to 28%. It wasn't like I was making late payments or going over my limit. Rather the card was a student Visa that I got when I first started college. I kept a small balance on it, made my over-the-minimum payments on time every month, and my interest rate just kept creeping up. I didn't think too much of it, because I didn't use the card for much, as it had a very small limit. Anyway, I ended up canceling the account and moving the balance to a 0% APR card. When I called to cancel, they offered to lower the APR to 6.99% and increase my limit, but I had already transferred the balance, and besides, what good is a 6.99% APR when I have 0%????
I call my card companies every 6 months to get a lower rate and my cards are 7.99% or lower. I've never had a bank tell me they couldn't lower my rate I've even gotten special promotions for 9 months at 1.99%. It's totally worth the effort as long as you pay on time every month and are never late your bank shouldn't have a problem adjusting your rate.
I have this same issue my Chase Visa. I've always been able to pay my balance off full so I never cared about the APR rate, until recently. With an unexpected job loss, my balance grew as my payments became higher. I just recently realized I'm paying too much in interest (24%). Instead of haggling with Henry from India and stressing myself out, I just applied for a Citi card with 0% interest on purchases and balance transfers for a year. Got it today and can't wait to go home and transfer the balance and stick it to Chase.
BS. i did this today, my interest rate is 19% and i have a credit score of 720. i told citibank the exact spiel - that i got an offer for 13.99% from wells fargo (i did) and could they match that? they said no. they asked a manager - manager said no.
oh, and 24% is nothing. 3 of my other cc's are at 30%. AND I HAVE A 720 CREDIT SCORE!
@bria:
Oh thank you Bria, I don't think I could have ever been educated enough to define the word Rape on my own.
@bria: Your objection to the slang use of the term is an overreaction. In this context it is considered slang, used to express the extreme nature of how Timothy is being screwed by his credit card company. "Rape" has also been used to describe any unsolicited act upon a person or object that borders on or suggests violence.
If you are disgusted, contact Mirriam-Webster and the creator of the English language so nobody ever uses the word "rape" out of your understanding of the word again.
@bria: I agree. I'm usually not uptight about using PC words, but this really irked me. Rape is one of those things that you don't joke about. Down Syndrome baby jokes, I get, but not rape.
Interest Rate? What's that?
Ok, I'll admit I have had late payments, due solely to stupidity. But that only lasts a few days before I realize "OH SHIT!!!", slap myself on the head, and send in the payment.
Seriously, I have had a card since senior year in high school. It had a paltry $300 limit, but no service/annual fees. I now have four cards, and have never once cared about what the interest rate is on any of them. Smart spending, people. That's all you need to know. Yes, credit cards make great SHORT-TERM loans, but I don't understand why anyone would put a balance on a card with a 24% interest rate!
To the above:
This context of the word rape is not nearly SEVERE enough to warrant its use.
It's also hurtful to those of us that have been raped and know how different it is than a high APR.
get a new credit card that offers 0% or very low APR. I was watching diggnation and Alex ( one of the host) did this. He called them saying that he wants to transfer all of his balance to the new card, they asked why and he said because "your" APR is high. guess what they did, they said okay how about we lower it to like 7% or something. It was a dramatic decrease from their original APR value.
@bria: No it is not. Why is it acceptable when I don't want it to be, yet saying rape isn't acceptable when you don't want it to be? Bit of a double standard there? Get off your high horse. I am so sick of you over sensitive jerks trying to make the rest of the world bow down to your way of thinking. Get over yourself.
@BoomerFive:
I don't understand your second sentence.
I'm not trying to be on any high horse; I'm trying to say it's a trigger and very offensive to rape survivors.
@bobloblawsblog: Credit score of 720 and 30% rates? Dude....
Not to mention that just because it didn't work for you one time doesn't mean it won't work for other people.
ESPECIALLY comments like this:
...especially when there is no dinner first or lube involved..
@bria: PC = annoying. Seriously. People use the verb "rape" for all kinds of things, not the least of which are things for which "theft" might be more accurate, but not as descriptive or colorful.
I don't give a shit about political correctness.
What I'm saying is: to those that have never thought using the verb rape when discussing an APR could be offensive, it certainly can be and comments like this:
...especially when there is no dinner first or lube involved..
are especially offensive and hurtful to rape survivors.
@bria: Bravo to you and others who made this point.
Furthermore, this post does not indicate why Timothy's interest rate is so high.
Did he agree to this rate when applying for the card? Did he have a lower rate that changed? Typically rates this high are meant to be punitive, after a cardholder repeatedly makes late payments or goes over limit.
In other words, this rate could be a direct result of Timothy's actions.
Rape is of course violence that is irrespective of the victim's actions.
@BrawlerBarbie: thanks for that - additionally, i think it's important to highlight the sheer violence of the act over the sexual nature of it. Rape is an act of violence. It's also about power. I think it is an apt slang term for this article. Rape is not a joke. It sucks. It's horrible. I don't think anyone is confused on that point.
The word "rape" means "seize or plunder" in its original meaning, and one of its current meanings. It is perfectly appropriate in this context.
Thank you ! :)
What I'm saying isn't in reference to any political correctness or the "PC police" or anything like that. I'm glad you understood.
@bria: agreed. i hear that people who live through attempted murder are sensitive about the word "killed."
@bria: Honestly, it is the internet, what do you expect? It is a commonly used phrase (whether it should be or not)...Getting worked up over it, especially in the comments, won't yield much of a solution.
@crouton976: Win.
With all due respect Bria, "rape" in popular culture has taken on a completely different meaning that's just as valid in that context as the dictionary definition.
@bria: You're still overreacting, and your response to this topic does not belong here. Like all things we are exposed to by the media, you can choose to ignore it. By getting butthurt on the internet over one word used in a context that has nothing to do with what you experienced personally, you come across as an oversensitive rabblerouser and take away from the discussion that the original post was meant to inspire.
It is terrible that you had such an experience. Perhaps you should reconsider the sites you visit if a four-letter-word triggers you.
I'm not too worked up :)
I'm saying it SHOULDN'T be as commonly used as it is, when people don't understand its historical context.
As a rape survivor, this is offensive to me.
@blackmage439: Personally I don't understand why anyone would buy something that they cannot immediately pay off, but that's just me.
If you find yourself making late payments, consider setting up online bill pay with your bank. Whenever you get paid, set up a bill payment to go out that day to your (credit card |water|gas|electric|car|insurance|etc) company. I've been doing this for years and have never had a late payment. In fact, stupid me, I found that I had a $200 credit with the cable company since I never reduced the amount after eliminating Showtime and Skinemax.
@SadSam: My husband and I are still inundated with preapproved offers of 0% balance transfer. We got 10 between us last week alone.
I don't know if they would actually honor them if we actually requested one, but they're certainly still soliciting business.
I agree...Open another CC with lower rate and do a balance transfer.
@bria:
[www.aolsvc.merriam-webster.aol.com]
1 archaic : to seize and take away by force b: despoil
[www.aolsvc.merriam-webster.aol.com]
3. An outrageous violation
It's not even marked as slang. I get your outrage, but it's off-base. The word has more than one definition.
@bria: How many comments and how much time have you invested when you could have just ignored it and read past it?
To charge usurious rates is a moral evil. Credit cards are the only financial entity that can change the rules in the middle of the game. Don't play with fire. Get out of credit card (and all) debt and use a debit card. Don't know where to start? www.daveramsey.com is a great place. My wife and I have retired $20k in debt in the last 8 months and have $10 to go which we want to have wrapped by the first of next year.
I genuinely wanted to cancel my credit card I got when I was in college. It had a $500 limit and the interest rate was somewhere around 20%. I never used it because that rate was ridiculous. I called and asked the rep to cancel it. She transferred me to 'retentions' and the guy gave me the whole "we want to keep your valuable loyal service" or whatever. But, they cut my rate down to 7.99% (I have good credit now that I have a credit history) and they increased my limit to $20,000.
The limit increase was a bit over the top, but it's nice to have this card with a much lower rate. And all it took was a phone call, which was all of five minutes out of my day.