But before throwing away your present card, you should first renegotiate the terms. Call up your credit-card representative. Remind him or her that your mailbox is brimming with rival offers-and ask for a lower rate. This technique has worked to get credit-card firms to waive the annual fees; now, some companies will knock off a couple of points of interest if you ask. “Negotiating is definitely the thing to do,” says Ruth Susswein, the executive director of the Bankcard Holders of America. If your issuer doesn’t oblige, then start shopping around-carefully. Read the fine print in those enticing offers that seem to arrive almost weekly in the mail. Many companies offer teaser rates to lure consumers.
The come-ons usually expire within three to 12 months; as the prime rate creeps upward, yours will too. And if you transfer an outstanding balance to the new lower-rate card, make sure that it isn’t treated like a cash advance, carrying a higher charge. For a list of low-rate cards, send $4 to BHA Customer Service at 524 Branch Drive, Salem, Va. 24153. RAM Research’s monthly newsletter supplies a similar list in every issue. Call (301) 695-4660.
