How to Reduce Your Credit Card Interest Rate

Would you like to reduce your credit card interest rate? It is possible to do. Read on for ways to reduce your credit card interest rates.

Difficulty: Moderately Easy

Instructions

1. - Gather information. -
   
   Gather the most recent statements from each of your credit card bills. Locate the interest rate amount you are currently paying.

2. - Call the credit card company. -
   
   Make a call to the customer service number at each credit card company. Tell the customer service representative who answers the phone that you would like to have your credit card interest rate reduced.
   
   Many times the first person you speak with will either have the authority to reduce your rate, or will transfer you to someone who does. Repeat your request with each person you speak with.

3. - Ask to speak to a manager. -
   
   If you're not having luck having your credit card interest rate reduced with the person you're speaking with, ask to speak to his or her manager. Continue to do this and to repeat your request until you have exhausted all options with the credit card company.

4. - Look for other options. -
   
   If you were not successful having your interest rate reduced with the phone calls to the credit card companies, begin checking out low interest and 0% interest offers from other companies.
   
   Chances are you receive these offers in your mailbox each week, but you can also do an online search for them.

5. - Tranfer balances. -
   
   If you find another credit card offer that offers a rate significantly less than one you are paying, apply for the card and have your balance transfered. (Make sure to check out the information in the warnings section below before completing this step!)

6. If you were not successful with the calls to credit card companies, give it some time and call again. In the meantime, make sure you are making your payments on time.

Tips & Warnings

• Check out all the small print on balance transfer offers. Sometimes there is a fee so look for offers that don't include this balance transfer fee.
• Once you have transfered a balance, don't run up another balance on the original card. Have a good debt reduction plan in place or you're likely to make your situation worse and not better.

Resources

• Get Out of Debt with Dave Ramsey
• Snowflake Your Way Out of Debt
• Articles About Debt at The Family CEO

[desertannie]

on 5/5/2009 Good tips on reducing interest rates! 5*

[Kathymcbain]

on 12/18/2008 This is great information, especially right now.

[LilacGirl]

on 7/20/2008 Good information to have. Thanks.