"Transfer higher rate credit card balances to..."

[vakkotaur]

Yesterday's mail included a suspiciously plain envelope which contained a new credit card since one I have was about to expire. I made the usual phone call to activate the thing and had the usual suggestion of moving other credit card debt to this card. I explained that there wasn't anything to transfer. I got to explain this again a couple more times as my asking about a lower rate resulted in a couple call transfers and each person I talked to asked about doing a balance transfer.

The last person I spoke with said she'd send out an application I can fill out and try to get a better rate. I wonder how that will go: "Yours is the highest rate card I have, which is I don't use it."? But she was able to lower the rate a few percent right away. It's better, but still high.

So far, it's gone my way. And if it doesn't get any better, well, I can keep on not using their card. Whether I'll keep it around at all then, I have yet to decide.

Comments

[willowisp.livejournal.com]

If you're looking to take out a big loan (car or mortgage) in the near future, you should give yourself at least a month's leeway and cancel any card(s) which you don't use. Then get a three-bureau report before you go to the lending agency and, if the reports don't list the card(s) as cancelled, start an investigation and don't apply for the loan until the bureau(s) has/have listed the card(s) as closed.

When doing loans the lenders assume that, even if you've never used, let alone maxed out, a card, that all cards have a balance equal to the limit on the individual card(s). Heck, I had a card for a chain store which closed years ago, and even though the store no longer has charge cards (due to absence of existence), they considered that chain's card in their calculations. This ghost balance will effect the amount of the loan as well as the interest rate.

This has been brought to you be the letter M (mortgage) and the number 5.5 (the rate we finally wound up with).