GRRR BMO Mastercard Upping Interest Rate!!

[Gazpache]

I've had a Mastercard through BMO for about 12 years now. I've loved it. I pay a small annual fee, and I get a 12.9% interest rate. I don't always carry a balance but it's really nice to have the lower rate when I do. I just got a letter in the mail stating they're getting rid of the lower interest rate option and will refund my annual fee, and put in place a 19.9% rate starting mid September.

Marvelous. BMO already lost my banking business because of constantly upping my plan fees. I went to PC Financial a year ago and have saved about $200 with their no-fee accounts. Guess I'm going to be looking for a credit card again... the sooner I can get BMO completely out of my life the better!!

[GoJays]

What's the difference between an annual fee and paying interest occasionally?

[Natalka]

Gaz, me too - not impressed...

[Shwa Girl]

Just like negotiating with your cable, phone or internet provider, before you leave, this might work:

Making the Pitch for a Lower Rate
The process to getting your credit-card rate lowered only involves three steps, shouldn't take more than 15-20 minutes and doesn't require any advanced negotiating skills. It just takes getting the right information in your hands and the right person on the phone.




Step 1: Find a Lower Rate Elsewhere
First, you need to collect some competitive offers on your interest rate. In other words, you need to show your credit card company that you're serious about taking your balance, its source of profit, elsewhere.

You can probably collect a stack of competitive offers simply by letting your junk mail pile up for a week. In that stack, you'll find plenty of balance-transfer offers from other credit card companies offering temporarily lowered rates for transferring your balance. You can also spend a few minutes surfing large credit card companies' websites for their balance-transfer rates. Ideally, you want to find three to four offers for a rate around 10% or less for a 12-month period.

Step 2: Ask the Right Person
Next, grab your credit card, flip it over, and call the customer service number on the back. Then, keep hitting zero or whatever it takes to talk to a live person. Tell the representative that you've received numerous offers for a much lower interest rate from other credit card companies, but that you don't want to have to move your balance to another company.

If the customer service representative says that a lower rate isn't possible, ask to speak to his or her supervisor. If you are refused, ask for the representative's full name and customer service identification number - this usually places a little fear in the person, and he or she will want to hand you off as soon as possible.

When you get the customer service manager, which is probably the person you've wanted to talk to from the start, you'll again want to make your pitch. Be even sweeter this time. Be sure to tell the agent how much you've enjoyed having your account with the company and how much you'd like to keep it there, but also how much money you could be saving elsewhere. Then ask if he or she could save you the hassle of transferring by matching the other companies' interest rates.

There's at least a 50% chance, if not better, that your request will be granted. Even if your company won't match the competitor's rate, it may still agree to significantly lower your rate. If your original rate was 20% or less and the credit card company is willing to lower it by 5% or more, take the offer. If your rate is more than 20%, you should hold out for a reduction of at least 10%.

http://www.investopedia.com/articles...t-card-apr.asp