How to Reduce Your Credit Card Interest Rate

Are you paying high interest rates on your credit cards? Creditors raise interest rates all the time. By following these tips, you can save hundreds of dollars each month on credit card interest. It's easier than you think. Follow these tips to reduce your credit card interest rates.

Difficulty: Easy

Instructions

Things You'll Need:

• Access to the Internet

1. 
    

   To reduce credit card rates, get on online access to your credit card accounts. Just go directly to to their websites and sign up for free online access. It's easy to reduce credit card rates. You just need your credit card and personal information. There should be a "sign-up now" or "enroll now" link. You will be able to access your account, pay your bills and contact customer service.

2. 
    
   Save Money on Credit Card Interest Rate

   Email your credit card companies through your online accounts. Usually you can find the "contact us" link through the customer service link. All you need to do is write an email like this: Dear Sir or Madam: My credit card interest rate seems extremely high. I have been a customer with your company for XX years or several years and have made most of my payments on time. I noticed that my credit card interest rate is XX, which is very high. Will you please reduce my interest rate. Sincerely, XX. Make sure to keep it short. Check for grammar and punctuation.

3. 
    

   You will receive an email shortly with a reply that will ask you to sign-on to your account because they have answered your request. Usually I receive the replies from my creditors within a few hours. Sign-on to your account. You will find their replies somewhere in the customer service links. Most of the time, your creditors will reduce your credit card interest rates.

4. 
    

   To reduce your credit card interest rates, pay your bills on time. If you are one day late, credit card companies will raise your interest rates. If you have been late a few or many times, your credit card companies may ask you to make payments on time for six months and then offer to reduce your rate. I just got a rate reduced where the payments had been late for the past 12 months, so it's not impossible to get an interest rate reduced when you have been making late payments on your credit card. It doesn't make sense not to ask anyway. Make sure to contact your creditor and explain why you were late. For example you could write something like I was busy with a death in the family, something was going on at work, or my payment due date makes it difficult to pay on time each month. Be honest, and your interest rate will be reduced.

5. Don't be afraid to ask your credit card companies to reduce your interest rate. If you have made most of payments on time, the odds are about 90% that your creditor will reduce your rate. Even if you have not made payments on time, tell them you promise to make your payments on time in the future. I just emailed three of my creditors asking them to reduce my rate. Two said yes and reduced my rates significantly, and one said my rate was already low, but if they have any offers of lower credit card interest rates in the future, I could ask then.

Tips & Warnings

• Do not call your creditors. Ask them in writing to reduce your rates. Statistically from my experience, the odds are much better if you put your requests in writing.
• Always check your statements for fluctuations in your interest rate. You should have access online to least the past twelve months' bank statements.
• When enrolling online make sure the URL address has the "s" after the "https." An "s" means it's a secure sign-in process.
• NEVER sign-on to your account from an email link. There are a lot of unscrupulous people sending spam emails that will appear to be from your creditors. Your credit card company will never ask you to sign-on to your account from an email.

Resources

• How to raise your fico credit score without spending money

[cheapcindy]

on 1/10/2009 great advice - thanks for sharing!

[tarajeff1]

on 12/28/2008 Great information.