How to Get a Lower Interest Rate on a Credit Card

Getting a lower interest rate on a credit card can be as simple as lowering the rate on your existing account.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Fax Machines
• Telephones
• File Cabinets
• Internet Access
• Credit Cards And Loans
• Credit Counseling Services
• Credit Reports
• Small Business Credit Cards
• Hanging Files
• Manila File Folders
• Computers

1. Call institutions at which you have existing credit card accounts. Ask them to convert your account to the lowest available rate. Ask them to consider your payment history and longtime customer relationship.

2. Search for a company with better rates if your existing credit card company cannot satisfy your request. Look for solicitations in the mail or contact local banks. You can even contact either Visa or MasterCard and ask for a list of preferred issuers.

3. Contact companies in which you are interested and ask for an application. Inquire whether you can send an application by phone, fax or Internet.

4. Once you complete and return the application, you should have an answer within 10 business days. Call if you haven't heard anything.

5. If your request is denied, the company is required to give you an explanation in writing. You are also entitled to a free copy of your credit report. Your denial letter should explain how you can obtain this. If it does not, contact the credit card company directly and ask for assistance.

Tips & Warnings

• You can keep rolling over credit card balances to different cards at introductory rates until you are able to pay off your account balance. However, this can be time-consuming and requires you to keep accurate records.
• Read the fine print - these "lower" rates may be introductory rates only, meaning they only last for a short period of time, after which your rate will jump up.
• Maintain a good credit history. Credit card companies generally reserve the lowest interest rates for customers with the strongest credit histories.

[angelicbrat07]

on 5/8/2009 I recieved credit counseling through this one website www.freerateupdate.com They lowered my rate without even hurting my credit score! Hope this helps!

[angelicbrat07]

on 5/8/2009 I recieved credit counseling through this one website www.freerateupdate.com/**** They lowered my rate without even hurting my credit score!

[rkworthy]

on 12/6/2008 If you want more help with Step 1 in the article (ie. calling the credit card companies), I found this article to also be helpful: http://www.brighthub.com/money/personal-finance/articles/17952.aspx
I used those techniques and had one credit card go from 29.99% interest to 9.99% interest. It does help, though, it have a good credit rating.

[mathez]

on 11/22/2008 If your credit score is high (750+), you can ask the bank to lower the rate, or increase your limit, and they'll do it, especially if you come with them with a competitor bank's credit card offer. I've done this successfully before. If you have a low score, you should try asking the bank, but they'll probably just say no. In this case you need to apply for a lower APR credit card. Don't settle on the offers you get in the mail, do online research! There are tons of sites out there, one that I've been using is http://www.iCreditStore.com.

[mathez]

on 11/22/2008 The amount of leverage you have with the bank depends greatly on your credit score. I've been able to get my rate lowered just by presenting a competing card offer, but my credit score is good. With a lower credit score, sometimes the only options left is to just open a new card with a lower rate and try to transfer the balance without loosing too much money. I never settle for offers I get in the mail, I always do research. I site I often use is http://www.iCreditStore.com.