How to Get Lower Interest Rates On Your Credit Cards

Ask the issuing bank for a lower interest rate on your credit cards.

Bankrate.com reports that a national U.S. Public Interest Research Group survey revealed that 50 people with various credit histories called their credit card issuers to ask for lower interest rates. Out of those 50, over half, 56 percent, were able to obtain lower interest rates on their credit card balances. In fact, states Bankrate, "28 consumers who landed lower rates saw the APRs on their cards drop from an average of 16 percent to 10.47 percent." If you have a telephone and some time to kill, you can try your luck at a lower interest rate.

Things You'll Need

• The Phone Number for all of your credit card companys

Instructions

1. Before you call, be aware of your payment history. If you are a good customer, paying your full balance each month, you are in a good position to get a lower interest rate. The day might come when you need to carry a balance, but being a good, solid customer should work in your favor.

2. Find the current interest rate that you are paying on the cards you have. This is printed on your monthly statement. Know the current prime interest rate. Then call the customer service number on the back of your credit card.

3. Talk to a real person, a customer service representative. Let her know that you are looking for a lower interest rate. Mention the prime rate if you feel some resistance. A reasonable rate should be a percentage added to the prime rate.

4. If being a polite, informed customer with a good history doesn't do the trick, ask to talk to a supervisor and expect to spend some time on hold. Make your case with the supervisor.

5. You may net a lower rate with the customer service representative or the supervisor. If it is not to your liking or you haven't gotten a decrease at all, write a letter to the issuer. It may be more difficult to lower your rate for a store card than for a credit card, notes CreditCards.com.

6. Call the issuer again in six months if you aren't satisfied with the results of your quest. Persistence and continued on-time payments may send lower a interest rate your way.

Tips & Warnings

• The longer you have had the card the better your chances are of getting the best rate.

• Keep in mind that credit card companies want to hang onto good customers.

• If you have never missed payments or anything, let them know that as well. They would not want to turn away a good customer.

References

• Bankrate.com: Want a lower credit card rate? Just ask
• CreditCards.com: How I asked for -- and got -- a lower credit card interest rate