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It pays to query your credit card APR

April 19, 2009

banking

I received a letter a couple of days ago telling me that the APR on an old credit card which I still have but no longer use, was going to go up from an already high 17.9% up to a rediculous 24.9%. Given that it is easy to get a variety of cards with an APR of 10% or less, with an additional 12 months+ at 0%, you can see why I don’t use it any more.

I phoned the card company to enquire why there had been such a large hike in the interest rate, and was told that there was an across the board increase going on. After querying this and stating that 17.9% was already very high and 24.9% was completely over the top, and that I wanted to cancel the card, I was then immediately offered another rate for the same card of just 7.9%. That is a 17% reduction on the overall APR!!

The moral of this story is that with competition for your business within the finance industry as fierce as it currently is, if you start to press the suppliers, you can often get them to make some large concessions, and maybe save a lot of money.

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