How to Lower Credit Card Interest Rate

If you have a high credit card interest rate, with a single phone call to the card issuer you might be able to secure a lower rate. A six-month history of timely payments and overall responsible management of your account may be all that you need to persuade a listening customer service representative that your request has merit.

Difficulty:

Easy

Instructions

Things You'll Need

• Your credit statements for the past six months
• Number for your credit card company

1. Gather all credit card statements for the past six months. Make note of your extended credit to used credit ratio; how many times out of the past six months you paid your bill on time;
   how many times over your history with the card you have paid on time; if you have ever maxed out or exceeded your credit limit; your current interest rate and what you would like it to be.

2. Call the credit card issuer. When connected to a customer service representative, explain that you are calling to request a lower interest rate.

3. Listing reasons that you should be given a better rate.

4. Wait for the customer service representative to review your account and consult a manager. If asked how much you would like your rate lowered, request a decrease of no more than 10 percentage points.

5. You will probably be put on hold again while they factor this number into their calculations before they return with the verdict. There are three possible outcomes:
   1) They will say they are unable to lower your rate at this time
   2) They will say they can lower your rate a few points, but not to the amount your requested
   3) They will lower your rate to your requested amount

6. Ask the customer service representative to send you a letter detailing the new change to your account and your new interest rate.

7. Build your case by making payments on time and lowering your debt amount and try again in three months if the credit card issuer declines to lower your rate.

Tips & Warnings

• Make sure you have at least six months of good credit history to back up your request

• If you are feeling like you have a great, solid case, feel free to hint that you are getting other offers from different banks/creditors for lower rate cards, but you want to stay with your current one if at all possible

• Don't take "No" for a final answer - you have nothing to lose and lots of money to gain by lowering your rate, so if you don't succeed the first time work on your case and try again in a few months - the worst they can say then is "No" too!

References

• Youtube: Lower Credit Card Interest Rates
• Bankrate.com; Want a lower credit card rate? Just ask; Lucy Lazarony; April 15, 2002