Thursday, November 21, 2024

Hi Scott,

Your books are great! I own 3 and have recommended them to all my friends!

I have a credit card with a $75 annual fee that I was happy to pay because the interest rate was fixed for years at Prime + 0% for all types of transactions (purchases, advances, transfers). I called the card issuer last week for some routine issues and happened to ask what my rate was. It was raised to Prime + 4! The operator said they sent me a notification letter last year but couldn't tell me why the rate had changed.

I don't use this card much, but it's my highest limit card, at $25,000, so canceling it would be drastic for my utilization rate and FICO score. I tend to use my Amex card--$45,000 of purchases charged and paid off monthly last year, $35,000 the year before, according to the annual summary they send out.

The operator said I could fax a copy of my Equifax credit report to them and hope for the best, but this seems like a long shot.

Any suggestions?

Keep up the good work,
Dean

Dean,

Thank you for recommending my books!

I wouldn't want to cancel the card for the same reasons. Also, because that card may be a great source for low-rate transfer offers in the future.

I get the feeling that you don't carry a balance on the card since you said that you don't use the card that much. If you plan on making any large purchase in the near future, you may have some leverage to get that rate reduced.

You could try calling them and saying, "Listen, I'm about to make $2,000 in purchases. I'll probably be carrying that balance for a while and cannot do it with your card because the rate is a little too high. I have another card I can use, but since I have a longstanding relationship with your bank, I wanted to give you a chance to be competitive with my other offers. What card should I use to make these purchases tomorrow?" Remember to ask for a supervisor if the first representative cannot help (reduce your rate).

Otherwise, I would look for another card to use for purchases. Eventually, your current card will wonder why you're not using them. They'll send you low-rate offers and maybe decide that the increase in rate on a $0 balance doesn't equal the same profits as any balance at the lower rate you requested.

Good luck and please let me know how it goes.

Regards, 
Scott

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