How to Negotiate a Lower APR on a Credit Card

During rough economic times, you can attempt to negotiate a lower APR on your credit card. Typically, the APR is a fixed percentage plus prime. It applies to purchases, balance transfers and cash advances. Since the credit card business is competitive, your provider wants you to use its card. You do, however, have a right to negotiate a lower APR. While pursuing a lower APR, you may also discover ways to save yourself some money.

Instructions

1. Organize first. Have your credit card with you and write down your APR and the current balance of the card. If you want to lower the APR on more than one card, have them all out and listed in this manner.

2. Call your credit card company. You have a right to question any APR on any credit card. Check the date you signed up for that credit card, since you may have used it for over 1 year, and the terms of that agreement may have expired.

3. Talk to a live person on the phone. Bypass the automated system and do not try to negotiate a lower APR through email. You'll only find success by negotiating with a customer service representative.

4. Talk to the customer service representative in a professional, friendly manner. Have her check your terms first. Let her look you up in the company's system and tell you what your APR is. If you are unhappy with your APR, ask if it can lowered.

5. Listen for any options available to you. The option may be limited to 3 or 6 months, but it may be worth it to you to take a 3.99 APR for that time period as opposed to keeping your 9.99 percent APR.

6. Glance at the APRs of your other cards and use this information while negotiating. Remember, your credit card company wants your business, so it's in the company's interest to remain competitive.

7. Up the stakes, if you want to. If you absolutely cannot live with your ridiculously high APR and you must get it lowered, suggest to the representative that your only choice is to cut up your card. Since the company wants your business, the representative's reaction alone may get your APR lowered. You also can ask to speak to another representative or a supervisor.

8. Finish your conversation by inquiring as to the APR on balance transfers and cash advances. If you cannot negotiate down your APR on purchases, ask for a lower balance transfer APR. Check the APRs of balance transfers on other cards and transfer money on the cards with the lowest APR. If you obtain cash from your credit card, again ask for the lowest possible APR.

Tips & Warnings

• Remain polite to the customer representative. That person is only doing her job.

• Be careful of suspension plans or holiday plans offered by your credit card company. Make sure you understand the terms completely. If a plan sounds good, get it in writing and only for a very limited time. And ask for an opt-out option of 1 month.