Debt Daddy - Pimp My Interest Rate

Hairshirts Work.

After calling to pester Bank of America two more times after my lovely conversation with Angela Angela (personal friend of Lisa Lisa and the Cult Jam), I finally made it to someone who actually tried to help me (Insert audible gasp here).

Early on in our conversation, I was not expecting much. She was, after all, telling me what all the other "B of A" people I had spoken to were telling me - that my credit report and other various unnamed factors dictate what interest rates I'm allowed to have, and the one I had (17.99%) was the best I could get at this time. However, if I continued to make on time payments for the next 6 months, I might be able to get a better rate.

That's where I finally stopped being nice and got a little testy (balancing on that fine line where you go from asking someone to do something to telling someone to do something and hoping they don't call your bluff). I explained that I had been making on time payments for the last 12 years that I've had this card, so I had already done what they were asking me to do 24 times over! That alone deserved a better rate in my opinion.

Well, she appreciated that, but said she would have to talk to her supervisor and have him call me back. Yes, I flashed back to the mysterious Mr. Misterski too (who has not called me back as of yet - insert look of utter shock here). I said that was fine. I didn't even ask her for her name - I was tired and feeling a bit dejected over the whole process. What did it matter anyway? She'd probably lie about her name like Angela Angela (who lives in New York, New York?), and I truly didn't believe that anyone was going to call me back with anything good to say.

Ah, me of little faith. She called me back herself after only about fifteen minutes to tell me that they were going to reduce my rate to 13.99%. That may not sound like much to some of you, but about 50% of my credit card debt is with B of A right now, so four percentage points lower is just fine with me.

So, after calling this company three times, talking to a total of six people and spending a little under an hour of my time, I saved several thousands of dollars in interest payments. I'd say that was time well spent.

In the midst of these B of A dealings, I also called Citibank, who was charging me 18.99% interest. Suprisingly, I only had to talk to two people there before they bumped my rate down to 10.99%. Oh, and something to keep in mind - most of the rates on credit cards, variable APR mortgages and car loans are tied to the prime rate, which has come down at least 1/2 a point in recent weeks, so in some cases, your rate comes down even if you don't ask for it.

I plugged all these rate reductions (those I negotiated and those from the prime rate reduction) into my Dave Ramsey debt software and ran the debt snowball program again. All told, over the life of my debt, I will have saved $58,129.57 in interest.

And that sure makes a pretty looking diamond on my sword. :)

Bank of America - Instant Replay

Last night, I was watching a financial program where they were talking about calling your credit cards and asking for a reduced interest rate. I've tried this many times in the past, and have usually gotten nowhere. But they had four women try, and three out of four of them actually did get their interest rate lowered, so it got my hopes up. Maybe the bank rules had changed a bit. Maybe they were easing up in light of the "hard times" that banks are having right now (brief moment of silence and reflection as I shed a single tear for the plight of the banks...right).

Anyway, I decided to call them. The following was my first call, to Bank of America, which I wrote down immediately after hanging up while it was fresh in my memory. Productive? We'll see. Humorous? I thought so - you be the judge.


My name is Angela - how may I give you excellent service today?

I'd like to get a lower interest rate and I'd like to know what I need to do to make that happen.

Well Sir, I'm looking at your account and this is the best rate we have for your account at this time.

You don't have a lower rate available for my account?

No Sir, this is the best rate for your account at this time.

I assume that other people have lower rates; what do I need to do to get a rate like theirs?

This is the best rate we have for your account at this time.

Yes, for my account - I heard you the first three times you said that. But when you say, "for my account" it leads me to believe that other cardholders may have lower interest rates, so my question to you is, what do I have to do to get their rate?

Just keep paying your bill on time, Sir.

All I have to do is pay my bill on time and I'll get a lower rate?

I can't guarantee that, Sir.

You said this was the best rate for my account; on what criteria do you base that decision?



We don't have access to that information, Sir.

Please transfer me to the department that does have that information.

We're unable to share that information with you, Sir.

Your company won't tell me how they came to the decision regarding my interest rate?

No, Sir.

So there's nothing that anyone can do?

No, Sir.

What if I just paid off this card and cancelled the account; would that be cool with you?

That would be fine, Sir.

Really?

Yes, Sir.

Let me talk to your supervisor, please.

If I can get your name and number, I'll have my supervisor call you back within 24 hours.

Okay, but first I'll need your name - who am I speaking with?

Angela.

Angela, what is your last name?

Angela.

Your name is Angela Angela?

Yes.

What call center are you located in, Angela?

Hunt Valley.

Hunt Valley where?

Hunt Valley, Maryland.

Thank you for not saying Hunt Valley, Hunt Valley Angela, because that just would've been silly. What is your supervisors name?



His....um his name.....it's.....Misss.....his name....Misterski. Mr. Misterski.

And he'll call me back within 24 hours?

Yes, Sir.

(I gave her my name and number here)

Thank you.


Do you think "Mr. Misterski" is gonna call me back? Yeah, I'm not holding my breath either. That's okay - I plan on calling them back on Tuesday. And two days after that. And two days after that, and on and on and on until they get so sick of hearing from me that they do reduce my rate. It's a little maneuver I like to call, "The Human Hairshirt" (hairshirt, from Wiki - a garment made of coarse cloth or animal hair. In more modern religious circles, the word has come to simply mean an object that can be worn to induce some degree of discomfort or pain.) While I'm not trying to cause anyone pain, I've found that some minor discomfort can go a long way toward getting what you want. And, for all the discomfort they've caused all of us over the years, I consider this simply returning the favor. Reciprocity. I love it.

I'll keep you posted.