Weddingbee

As much as I try to pay off my credit card debt in full each month, sometimes it’s hard to do so, especially when it comes to my wedding. You see, I love reward points. It’s like free money to me, since the more points I get, the more cash I get back, which I use to pay down the debt.

Unfortunately, as of late, since I have been on a shopping frenzy, the debt has been piling on faster than I can pay it down. Plus, the money that my parents are giving me for the wedding hasn’t come in yet. Also, almost everything I’ve bought (favors, invitations, accessories, etc) were purchased online, meaning they only take credit cards.

So I decided to call my credit card companies to get them to lower my interest rates.

I tell all of my friends this: Call your credit card companies once a year to discuss your interest rates. I try to never pay above 10%. How do I do this? It’s easy.

1. Call your credit card company and say that you are very concerned about your interest rates. Say that it seems a bit high compared to what your other credit card companies are giving you, and that you’d like to speak to someone who can help you analyze your interest rates. *Do not speak to the first person who answers the phone. They cannot help you with this. Make sure you speak to an credit analyst or a supervisor.*

2. Give reasons why you deserve a lower rate.

• Mention that you are getting married in xx months, and that you’ll be making a significant number of purchases in the coming months.
• You make more than the minimum payments every month, on time.
• You are being offered lower rates with other credit card companies that are not introductory.
• You have a good credit history.
• This is your primary credit card and you use it a lot.
• You might also want to casually mention that since your other credit card company is offering such a better rate, if they can’t at least lower it a little bit, you plan on paying the card off then getting rid of it. *This should be said very casually, as an aside, because you shouldn’t threaten to cut off your card unless you mean it - they may tell you to go ahead and do it.*

3. Say that you would like to know if there is anything that’s available for a lower rate. You may need to change the type of card. Typically cards with reward points will charge a higher interest rate than a card that has no rewards services.

4. See if they can offer you a 0% interest rate on all future purchases until your honeymoon. For example, when I called my credit card company back in February, I told them that I was engaged, and will be spending a lot of money on that card towards the wedding. They offered me a lowered interest rate, AND a 0% on all new purchases until January 2007.

Some things to keep in mind:

1. When they offer you a new interest rate (hopefully), ask whether it is variable or fixed. Variable means that there is a fixed portion and the national prime portion. The prime rate goes up and down based on the economic state of our country. It is currently at 8.25% and it changes quite frequently. The fixed portion is whatever above the prime that the company wants to charge you. So they will say your rate is 9.99%, but if it’s variable, if the prime goes up, then so does your interest rate. A fixed interest rate is constant, however, the credit card company may change it at any time as well.

2. Most (I think all) credit card companies make you pay off the lower interest purchases first. So even though you are getting 0% interest on new purchases, when you pay it off, you are paying the 0% first. Any balance you had previously is still being charged at whatever the interest rate your card had. This is how they make money.

3. If you are OK with a slightly higher interest rate, I say take full advantage of the points system. Many companies offer deals with all inclusive resorts and you can use your points towards your honeymoon!

Finally, this system works better if you tend to have a good, long-standing history with the company you are using. They don’t want to lose your business, and they know that you are a good customer. They also know your spending habits, so use this tactic for your primary cards.

Good Luck!

• One of a Kind Bride Closi...
• Flickr Finds: Groom’...