How to Get Credit Cards to Lower the APR

If you carry a balance on your credit card and pay a high interest rate, you might as well be throwing that money down a hole in the ground. Credit card companies employ a lot of tricks to keep you paying more and more interest for as long as possible. Use a couple tricks of your own to reduce the APR on your credit card and save yourself a bit of money.

Instructions

1. Call your credit card company. The number is printed on the back of the card.

2. Tell the customer service representative that you want to cancel your account. They will quickly put you through to the customer retention department.

3. Say that you have received an offer in the mail from another credit card company. The other company is offering you a much lower APR if you transfer your balance to them.

4. Ask the person on the other end if they could match that offer. If not, threaten to leave.

5. Most of the time, the credit card company will gladly reduce your APR to keep you from leaving. It's cheaper than having to attract new customers.

6. If they refuse to lower your APR, you can always switch to another card with a lower interest rate. Many cards offer a very low introductory rate. Don't forget to either pay off the debt or switch to another card before the introductory period runs out.

Tips & Warnings

• Be polite but insistent. Don't get angry or raise your voice when negotiating for a better rate.

References

• Federal Reserve