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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.
Best Overall Offer
DISCOVER® MORE® CARD - BEST CREDIT CARD COMPANY |
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- 0% APR on Balance Transfers for a FULL 12 months
- 0% APR on Purchases for a FULL 6 months
- Editor's Note: Discover is our top pick amongst credit card companies because they have proven to be the most customer friendly credit card company during the past two years. Unlike most major credit card companies, Discover did not dramatically raise interest rates on their customers in 2009 and generated virtually no negative feedback in the past year.
- 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants and more
- Up to 1% unlimited Cashback Bonus on all other purchases automatically
- Turn your Cashback Bonus into bigger rewards by redeeming for gift cards from over 100 brand-name Partners
- Instant Response within 60 seconds
- No Annual Fee
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Intro on Purchases
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Intro APR Period
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Regular APR
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Annual Fee
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Credit Needed
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0% *
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12 Months *
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As Low As 11.99% Variable *
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None *
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Good
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CITI® PLATINUM SELECT® CARD |
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- 0% APR* on balance transfers and purchases for up to 15 months
- Editor's Tip: See application for complete terms and conditions on 0% rates
- No annual fee
- Citi® Identity Theft Solutions
- $0 Liability on unauthorized purchases
- Secure, free online account management
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Intro on Purchases
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Intro APR Period
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Regular APR
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Annual Fee
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Credit Needed
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0% *
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up to 15 Months *
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As Low as 11.99% Variable *
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None *
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Good
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Best for Fair/OK/Bad Credit
AMERICAN DREAMCARD™ MASTERCARD® - INSTANT APPROVAL |
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- Best current credit card offer for consumers with fair or average credit
- Grace period for purchases of at least 20 days
- Editor's Note: This card may have NO annual fee or may come with a fee of $39 or $59, based on a review of your credit
- †See terms and conditions for important rate, fee and other cost information, and limitations
- This card may have no annual fee or may come with a fee of $39 or $59, based on a review of your application
- †See terms and conditions for important rate, fee and other cost information, and limitations
- Is your credit better than you think? [\"http://www.credit.com/r/identity-guard-premium/af=p45011&ag=sccad\",\"Click Here to Check Your Credit Scores for Free and See if You Can Qualify for a different offer\"]
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Intro on Purchases
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Intro APR Period
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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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14.99/21.99% *
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$0, $39, $59 *
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Average
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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 |
