A few years back I fell into some financial problems, and ran up one of my credit cards. After months and months of fighting with the credit card people, I finally got on a payment schedule that I could work with. I do believe my interest rate was fixed for one year at 12%. Now with the year being over my rate is 29.something%. This tacks on another 100 plus dollars a month to the bill. I ran my credit reports and they all say something different, so I have no clue how to go about getting this lowered. Someone suggested I call one of those credit repair people, I am wondering if anyone has used one and if they helped.
I was just getting this balance down, and now it is shooting right back up and I feel like I'm never going to be able to pay it off. Any help would be great.
2007-06-26 04:06:45 · 4 answers · asked by rollieoolie 4 in Business & Finance ➔ Credit
I should have mentioned the account has been closed for some time now. And the reason I brought up my credit report, when I called my credit card people to ask why the rate went up, they said they received something from the credit bureau telling them to.
2007-06-26 04:27:08 · update #1
You could always call the credit card companies again to ask for a lower rate. Paying 12% is better than paying 29% and its still a good rate of return for them. If you had been paying them on time, as agreed, they should work with you.
The credit repair people can't change your credit report. They can only assist in helping you correct inaccurate information on your credit report and the service is not free. If you were 30 days late on a payment in April, nobody can change it.
Try contacting your lender to discuss any potential inaccurate information.
2007-06-26 04:23:48 · answer #1 · answered by reitz37 2 · 0⤊ 0⤋
Do a balance transfer to another card. They usually offer promotional rates, either a lower APR for a fixed amount of time or a higher one that lasts until the balance is paid off. However, it sounds like your credit may not be too good given the situation in, so you may not have the option of a balance transfer with a good rate. If that's the case, you might need to work with a credit repair organization. If you choose to do that, be sure you do your homework. Some of those agencies will charge you an arm and a leg, while others are non-profit/not-for-profit and will help you without too much sacrifice on your end.
2007-06-26 05:02:55 · answer #2 · answered by jll1881 3 · 0⤊ 0⤋
they gave you a year to pay it off and only charged 12% during that time. You couldn't or wouldn't cut back your spending enough to pay it off.
My guess is that they'll not give you another extension at 12% no matter what you try.
That means changing to a different banker/card. You need one who will look at your payment success record over the past year and make a deal. Be prepared for it to demand that you increase your monthly payments significantly.
If you are willing to do that, maybe a local bank will take the chance. Or a credit union ... (they frequently offer cheaper rates anyway).
***
What choice do you have? Either reduce spending to pay 29% interest until the moon turns green or find a different lender and reduce spending to pay it off at lesser interest.
Or file for bankruptcy.
GL
2007-06-26 04:23:28 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋
Search for another credit card company to consolidate with; use your online search engines. Make sure you type in "consolidation credit cards" and find what it gives you. Try not to fill out a credit card app. online but get their Customer Service number and see if they can take an app. for you over the phone. Transfer your balance and work toward paying it off quickly like you've been doing.....then switch again when your promotion APR is expiring.
2007-06-26 04:17:59 · answer #4 · answered by baresbroncsbullsbuster 1 · 0⤊ 0⤋