Leary of calling CCC to lower APR as suggested Debt Eliminator

[Anonymous]

I just joined myFico today with the platinum offer.   Is this really a good time to call CCC and ask for lower APR as suggested when I did the Debt Eliminator?  I am afraid they will lower my CL which would hurt my score. 

I am committed to not using my cards again, and am ashamed of  my huge debt 46k accumulated over the past 12 years on 12 different cards. Othewise decent Fico score 716 (733EQ & 719TU)

I have called in the past but with the new changes I am afraid to call! Is this advice still accurate in today's world of CC's??

[pizzadude]

I would be rather cautious about this.  What is your current rate and what do you think you could reasonably ask to reduce it to ?

What is your current CC utilization for this card and across all cards ??  Some CCC's might do a hard pull to review where you are.

If your account is with BofA I would definately advise you to leave it alone for now.

[smallfry]

Just PIF every month and don't worry about it for a while. You never know what they might do.

[Anonymous]

---

@smallfry wrote:
Just PIF every month and don't worry about it for a while. You never know what they might do.

---

 

No offense, smallfry, but not everyone has $46k available to pay in full to avoid interest charges this month... or next month... 

[smallfry]

---

@Anonymous wrote:

---

@smallfry wrote:
Just PIF every month and don't worry about it for a while. You never know what they might do.

---

 

No offense, smallfry, but not everyone has $46k available to pay in full to avoid interest charges this month... or next month... 

---

No offense taken I missed that. Old age closing in I guess. Depending upon the issuer you run the risk of balance chasing. Worth a try in your situation I guess. You have stopped using them right?

[Creditaddict]

I would worry less about your fico for a second and more about saving some big bucks. taking your rate from a 20% down to 10% could save you over a hundred a month depending on the balance.  unless it's Bank of America I would CALL!!!

[marty56]

If they won't lower your rate, I would suggest a DMP program. You can take up to 5 years to PIF and you would get your interest rates lowered and also be AA proof.  Only problem would be being able to afford the DMP payments.

[Anonymous]

 Not sure if I should post reply to each person, bear with me I am new here.

here are answers to some questions asked:

 I am done with using CC!

I opted out with BofA a year ago at 16%.

I have cut up all store CC & all but 2 main CC. They have been removed from my billfold & in my safe. I am working on decluttering my home & selling excess items or donating the rest.

42% utilization credit limits, not good I know. Trust me I get the big picture, all I have to do is add up the interest I am paying monthly. Very sad, stupid whatever you want to call it.

My highest APR is 24.99% and that is with department stores. Lowest is 12% with Chase. Average is 16%. 

From what I read about DMP I would rather not go that route as long as I am making my payments on time.

According to this Debt Eliminator Step 3 suggests I call and ask for 9.5% based on my Fico score for each of my cards.

 I think this sounds dangerous in light of my situation with such a large amount of CC debt.  My thinking was the less attention I draw to myself the better...but what do I know!   After I call each card I am supposed to respond with their answer and then the Debt Eliminator or Suze (haha) will tell me the next step if they say no.

Lower the APR on your Us Bank card

Your current APR 16%

APR you deserve 9.5%

 XXXXXX, we’re going to work with Us Bank to lower your APR.

Just follow the script I’ve laid out for you and remember this: you are entitled to rate of 9.5%, and they know it!

1. Call Us Bank at  866-234-4750
   and ask to speak to a customer representative.
2. When you get a hold of a representative, read the following script:

   I’m calling to request a lower interest rate on my credit card. I know that my FICO® score of 726 should qualify me for an interest rate of 0% on balance transfers. I also know that my FICO® score qualifies me for and APR no higher than 9.5%.

   So, will you to lower my APR to a fair rate of 9.5%?

   IF YES: Thank you, I’ll look for this change on my next statement.

   IF NO: Okay, then I’m going to consider transferring my balance to another card.

Message Edited by free2bme on 03-09-2010 05:12 PM

[haulingthescoreup]

Is this from the Suze kit here? If so, this advice is probably a bit out of date. And that polite threat at the end of the conversation could easily blow up on you. They can see how much you owe overall when they soft your credit report, and they'll know that it's highly improbably that you would be able to do this.

I agree with marty --check into a DMP (debt management plan.) This is different from a debt negotiation company, that takes your money, sits on it, and tries to force your lenders to "settle for pennies on the dollar." (And ruin your credit in the process.) A DMP can help you get lower rates on your cards, although I think that the cards generally wind up being closed in the process.

If you don't want to do a DMP, you can try calling the CCC's and asking for lower rates. Be prepared to have cards closed out from under you, so you might want to keep the two cards that you think hold the most promise in the future out of this strategy, and just pay them off as best as you can.

But I think that a DMP would have more leverage and would be more likely to negotiate the lower rates. Several members here have had success with them, although you'll need to keep monitoring your CC websites to make sure that the payments are made in a timely manner by the DMP. You might want to change due dates so that your DMP always pays 7 days beforehand or something. The last thing that you want to do at this point is add lates into the mix.

It's a tough time in this economy to have to be battling this, I'm afraid.

[Anonymous]

 Thank you! That is what I wanted to confirm...this is out of date recommendation to call CCC with the Suze kit. Especially with my huge CC debt!

I don't want to have the cards closed as I read this can look bad, not that my debt doesn't look bad enough! I just want to get with it and begin the steps to get 0 balances, one by one. 

I have read that you have to watch the CC payments with DMP and timely payments.  I would be so upset if that happened! I schedule all my payments ahead and have never had a late payment.  I would love to benefit from a decrease in lower rates so I can get the balances paid off. Won't going with a DMP also hurt my future and current credit?  My understanding is that all cards would be closed and my CBR would state something about being handled by a DMP or something like that. My concern with all cards being closed is what if I had a medical emergency or something? I don't have much of a savings account to back me up if something happened.