Personal Finance News and Advice
How to Request a Lower Interest Rate on Your Credit Cards
It’s harder than it used to be to get a lower interest rate on your credit cards. Since the Credit CARD Act of 2009. creditors are charging higher interest and fees, and granter credit to fewer applicants than before.
It’s still worth trying to get lower rates, though. It only takes a few minutes on the phone to ask, and the worst that can happen is your creditor will simply say “no.”
If your payment history is especially good, you’re more likely to get a positive response. It also helps if you’ve been offered credit by other companies.
Call your credit card companies.
When you get in touch with a live representative at the credit card company, simply tell them you’ve been offered credit at a lower rate from a different company, and you’d like to lower your card’s rate if possible. If you’re serious about getting the best possible rate, tell them you intend to cancel your card and transfer the balance to one of the new lower rate cards you’ve been offered.
If you are approved for a lower interest rate,
ask the customer service representative for his or her name and write it down. Also write down the new interest rate offered and any other changes to your credit card terms.
If you are denied, you might try calling on a different day to see if you get a representative who is willing to work with you. Sometimes it’s just a matter of who you get on the phone.
If your balance is high (if you owe more than 25% of your available balance) you will be less likely to succeed in getting a lower rate. The longer you’ve had the card, the better your chances as well.
- Remember to keep things simple and direct.
- Be ready to consider a different credit card company if you don’t get the answer you want.
- Look around the web, such as Bankrate.com. for average interest rates to compare to.
- When researching average interest rates, don’t be tempted to apply for new credit cards.
Getting a lower interest rate is harder than it used to be, thanks to the Credit CARD Act. But 10 minutes on the phone to ask for a better interest rate is never a waste of time.