Credit cards are a boon in many ways for it has features and benefits unlike any other form of plastic money. In fact they are the best devices to handle emergencies and also times wherein you need a loan to make your dreams come true. This is because the proper use of credit cards helps you build a good credit history thereby positively affecting your standing with the bank.
Interest rates charged by the bank
Credit cards offer the facility for deferred payments for which an interest is generally charged. There are two ways in which a customer can avail of this facility:
- Wherein the customer is unable to pay the total outstanding on his credit card and
- Instances where the customer makes a lump sum single amount transaction.
In the first instance the customer is just required to pay a minimum amount. Interest is charged on the balance remaining amount as well as on any further transactions taking place.
In the second instance the customer has to pay an interest rate only on the single amount he wants converted into flexible pay. No interest is charged on his other transactions if he pays them off within the due date.
In both the above instances, however, the interest charged is quite high and if not negotiated can escalate to a point wherein it will be difficult to pay off these dues. For this the customer needs to contact the concerned bank like for examplecontact Bank of America customer service.
Ways to negotiate interest rates
Negotiating for bank rates is tough but not an improbable task because no bank wants to lose its customers to competition. There are some thumb rules which, if properly followed, can make this negotiation very easy. They areà
- A good amount of homework needs to be done before making the final call. This homework includes looking into the interest rates offered by the other banks. This knowledge will give the customer the required leverage to factor out a settlement with the concerned bank.
- Every bank wants to work with customers who are loyal and have a good credit rating with them. Hence having your credit history at hand will give you the added advantage required to broker a deal in your favour.
- Taking the initiative and calling up the customer service number also helps to tip the balance in your favour. Most banks have it printed on their cards with a rider, to encourage customers to call up. Also contacting the bank first is indicative of the positive mindset of the customer and enables the customer to be on their good side.
- Since interest rates charged amount to earnings for the bank, they are generally reluctant to drop their interest rates. Hence it might not be possible for customers to be successful on their first attempt. But persistence always pays and the bank is sure to respond positively after a few persistent tries.
Every person has his limitations and requires some amount of time to come back with a favourable reply. Thus having a polite conversation with the bank personnel and giving them the requisite time will only be beneficial for the customer and help the bank work in their favour by agreeing to lower the interest rates.