How to Negotiate Cheaper Balance Transfers

In this economy, many people have to carry credit card debt in order to survive. The interest rates that can be charged to this debt, however, can be quite high. To lower your credit card interest rate, many people decide to do balance transfers between credit cards. In order to get the best rate with a balance transfer, it is in the best interest of the borrower to negotiate with the credit card companies. Here are a few ideas on how to do just that.

Instructions

1

Using an online service, check your credit score to see what it currently is. When negotiating, you want to have information on your side. Your credit score and your payment history are your best assets in this situation.

2

Call all of your credit card companies and find out what their current balance transfer rates are for your account. They will know your payment history and credit score (they have access to it as your loan provider) and will base your rate upon this information.

3

Call a few other credit card companies (through which you do not currently have a credit card) to see what their best rate is as well. However, do not allow them to check your credit until you have decided which offer to accept. Ask them to give you a quote based upon your credit score and payment information gathered from the credit report you pulled in step 1.

4

Write down all of the offers that you have found and pick the next to lowest interest rate. Call the company with that rate and ask them to match or go lower than the lowest interest rate you received. Tell them that you will be moving your business to the lowest interest rate company.

5

Move your balances to the lowest interest rate offered. If you have additional money to move, move the balances to the second lowest rate offered.