How to Ask Your Credit Card Lenders for a Lower Interest Rate

If you have been paying your credit card bills in a timely manner, you may be able to save yourself hundreds, if not thousands, of dollars by having a five-minute conversation with your lender. Industry professionals say that three out of four people who request lower interest rates have their wishes granted. In a 2002 study by the U.S. Public Interest Research Group more than half of the participants were issued lower rates upon request. Those who were granted lower interest rates saw them drop an average of 16 percent, saving them thousands of dollars. We’ll show you how to do the same.

Difficulty: Easy

Instructions

Things You'll Need:

• Time
• Patience
• Your credit card statement

1. Call your credit card company’s customer service number listed on your statement.

2. Keep your request simple. Try something like, “Hi, My name is (your name). I am a good customer that pays in a timely manner. I keep getting solicitations in the mail from other credit card issuers with a lower interest rate than the one I am currently receiving from you. Can you do any better?” This simply states the matter and shows that you have other options if they choose to play hardball.

3. If the customer service representative is not willing to accommodate you needs, ask to speak to his supervisor.

4. Be prepared to walk. If you cannot get your lender to agree to decreasing your interest rate, do some research and move your account over to a card issuer who will give you a lower interest rate.

Tips & Warnings

• If you are turned down on your first request, try again in a couple weeks. You may reach a more pliable customer service representative that day or someone specialized to handle customers threatening to terminate the relationship.

[Nick05]

on 5/8/2008 Don't believe everything you hear... I live in Michigan, where the manufacturing jobs crisis is peaking and our mortgage default rate is sitting at about 27% in my county, right now. I tried this and called my credit card company, Discover, as a member in good standing, and was basically told that in order to lower my rate, I would need to have missed a few payments or be able to prove a negative change in my financial situation. So basically, they wouldn't do anything unless/until I was already in dire straits and my credit had been compromised.