Getting a Cheaper Credit Is up to You

By: Ajeet Khurana
Submitted: 2007-05-10 16:09:19
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 
If you are carrying a debt load such as a mortgage or credit card or both, you are probably spending much more on interest payments than towards your principal. That is just the way credit works. There is a way you can reorganize your finances to ensure that you get a mortgage or credit card that is actually cheaper. Ask for a lower rate.

It is true that a small phone call will help reduce your interest expenses. If you do not make the call, credit card and mortgage lenders will not bring down your interest rates of their own accord. In the case of cheap financing, the squeaky wheel will get the grease. In a 2002 national survey from U.S. Public Interest Research Group fifty customers with varied credit backgrounds called credit card and mortgage companies and requested lower rates. In this study, over half scored lower rates - a whopping 56%. Rates were seen to drop on average from 16% to 10.47. It has been reported that customers have been highly impressed that their credit cards and mortgages rates were sliced by one third simply through one phone call. It simply flows with the - it doesn't hurt to ask philosophy. If you don't ask, you DEFINITELY won't get it. Unless you make the first move and try to find out, you just never know what could happen.

So why don't more people do this? It is simple, it just doesn't occur to us. We are given a rate, we sign to it, and we presume it is immovable. But it costs credit card companies and mortgage lenders several hundred dollars in advertising and marketing to acquire one new customer. Today with online vendors offering the same service, competition is tough and if you are a good customer, the lender is going to work hard to keep you. Further, the lenders can afford to cut you a break, and they will certainly make you better offers if they see you as a potential customer. And this is precisely the approach you need to take when you make that call. "Hi this is so and so calling. In the mail today I've gotten about 4 different offers to reduce my mortgage rate or Visa interest rate. I am interested in getting a lower rate. What can you do for me so that I won't have to switch to another company?"

Avoid getting angry. You just need to ask, and always remember that you can catch more flies with honey than with vinegar. And follow the adage, if at first you don't succeed, try, and try again. You may get someone more cooperative on the phone next time. You may be redirected to the "customers threatening to switch" department. You never know what is going to happen until you try. If you are struggling with high interest rates, you have the power to at least try to do something about it. Do all you can to increase your savings and minimize your expenses

The author Ajeet Khurana is a writer and web enthusiast. He recommends that you visit Mortgages and Cheap Mortgages and Credit Card Offers.

Article source: Expert Articles

Most Recent Articles in Mortgage Refinance category

  • How to Fight Countrywide Loans - By: Kevin Levonas
    Foreclosure Case Law: Tina vs. Countrywide Home Loans Pt.1 An interesting case was decided recently in California: The Tinas fell behind on the mortgage payments and Countrywide foreclosed. the Tina's decided to fight for their homes.
  • H4H program... Hope or Hopeless? - By: Kevin Levonas
    Article on the new H4H program and its current effect
  • Myths and Facts about Lenders' Assistance to Homeowners - By: Katherine Marfal
    About Lenders' Assistance to Homeowners. Debunking some common myths to benefit the home owner.
  • Practical Guide To Prosessing Your Own Home Loan Modification - By: Kevin Levonas
    A mortgage loan modification, when completed succesfully may be the best option benefitting both the bank as well as the home owner. This article helps you in the processes of preparing for and processing your own home loan modiification.
  • Now's the time for First time home buyers to buy their first home - By: Alice Shown
    Realtors are saying that this is a great time for first time home buyers to buy a home.
  • Mortgage plan expected to ease rates pressure - By: Paul Sharp
    The federal government has been planning to boost the mortgage sector to meet the increased interest rates among much expectation. However, lenders apart from the bank have been banned because the funds provided by them have been dried up due to the global disaster.
  • Pros and Cons of Reverse Mortgage - By: Paul Sharp
    Reverse mortgages is used to help aged people who have reached the age of sixty two years and above to secure financially by providing them secure housing and repairs to their damaged property. There are both advantages and disadvantages of reverse mortgages. This article gives an analysis view of reverse mortgages.
  • Dyer Beech: No Complaints From Clients When It Comes To Fighting Mortgage Fraud - By: Felicia Newman
    Dyer Beech has been in the business for some time, and by simply looking at the feedback of clients and other organizations, it is known to afford the best possible level of service to its customers, with no complaints whatsoever.
  • Refinancing Risks and Rewards - By: Lisa Gray
    The costs associated with a refinance should be taken into consideration. The first is interest. Mortgage amortization works on the principle that you pay the majority of the interest early in the payment schedule. If you refinance early in the game, you are trading equity for a (possibly) lower payment.
  • Benefits of Second Mortgages - By: Davi db
    Second mortgages have become a common term in today's time. It is basically heard in the context of a home loan. In this article, we will tell you as to what do we exactly mean by saying second mortgage and also we will bring forth its benefits to the loan seeker.