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U R @: Education Center : The Credit Crunch : Interest Rate Increased? Act Quickly to Save
INTEREST RATE INCREASED? ACT QUICKLY TO SAVE
Recently, we've been getting downright shocking emails from consumers who are essentially being extorted by their credit card companies. Although every situation is not exactly the same, the basic ploy is similar: a letter arrives in the mail informing you that you can either close your credit card account or pay double, sometimes triple your current interest rate.
Ultimately, consumers who do not have the cash on hand to pay off their balances are forced to close their accounts. Otherwise, they would end up paying more than $100 in additional interest for every $1,000 in debt they have. Unfortunately, closing a credit card account can wreak havoc on a person's credit score, a problem which makes it difficult to get more credit in the future.
While consumer complaints we've recieved indicate that the credit card companies pulling these tricks are unwilling to change their minds, there are steps consumers can take to gain additional credit and protect their credit scores. However, these steps must be taken quickly.
The first step is to apply for a new credit card as quickly as possible. It can take anywhere from a few days to a few weeks for your credit report to update. Thus, if you apply for a new credit card right away, you have a better chance of getting approved, as your credit score will still be good.
The second step is to vigilantly monitor your credit score. There are a number of free services with one month trials available. If you cancel your trial before you are charged, you can get a few months of free credit monitoring by moving from one company to another. You can compare these deals in the free credit report section of Smart Credit Choices.
Below, you can compare credit cards that offer a 0% interest rate on balance transfers and purchases and apply online for approval. With a new 0% credit card, you can not only increase your available credit, but also save money on interest by taking advantage of balance transfers.
CITI® PLATINUM SELECT® MASTERCARD® |
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- 0% Intro APR on balance transfers for 18 months and 0% Intro APR on purchases for 12 months. After that, the APR will be 11.99%-19.99% based upon your creditworthiness. This APR will vary with the market based on the Prime Rate*
- Extra Cash from Citi: enjoy discounts on gift cards,travel, merchandise and more
- Citi® Identity Theft Solutions
- Secure, free online account management
- No annual fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 12 Months*
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0% for 18 Months*
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11.99-19.99% Variable*
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None
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Good
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DISCOVER® MORE CARD |
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- 0% intro APR on balance transfers for a full 15 months, then the Regular APR
- 0% intro APR on purchases for a full 6 months, then the Regular APR
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
- Up to 1% unlimited Cashback Bonus on all other purchases
- No Annual Fee
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Intro APR on Purchases
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Intro APR on Transfers
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Regular APR
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Annual Fee
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Credit Needed
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0% for 6 Months*
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0% for 15 Months*
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11.99% - 20.99% (Variable)*
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None
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Good
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ORCHARD BANK CLASSIC MASTERCARDS |
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Intro APR on Purchases |
Intro APR on Transfers |
Regular APR
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Annual Fee
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Credit Needed
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N/A*
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N/A*
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7.90% - 28.90% *
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See Terms* *
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Bad
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Compare Additional 0% APR Credit Card Offers and Apply Online
Get Your Credit Report and Scores for Free
**All information is presented as is and without warranty for informational purposes only. Please see our disclaimer for complete terms and conditions.
Read more related articles: The Credit Crunch |
