How to Reduce Your Credit Card Percentage Rate

A simple call could get you a lower credit card percentage rate.

Reducing your credit card percentage rate can save you money if you carry a balance on your credit card. Even if you pay off your balance in full every month, it's a good idea to have the lowest possible rate in case you miss a payment. Reducing the interest rate on your credit card is easy if you have a good history with your card company, but it is a little harder if you don't.

Things You'll Need

• Credit card
• phone

Instructions

1. Look over your payment history for your card. Notice whether you pay on time and in full or if you at least make the minimum payment every month.

2. Find the phone number for your credit card company's customer service. Often it is the main company number -- it may be printed on your card -- and there will be an option to speak with a service representative.

3. Ask for a lower interest rate. Yep, it is seriously that easy. The customer service representative will have information about your account and will be able to see how long you have had your account, if you have paid on time and whether your rate has been changed previously. You may get a rate change approval from the first person you talk with.

4. Ask why the company will not reduce your rate if your request is denied. If you believe you still may have a chance to get a rate reduction, ask to speak to a customer service manager.

5. Ask the manager for a reduction in your rate, citing reasons such as paying on time, paying at least the minimum or being a loyal customer. If you have received low-rate credit card offers from other companies, let the manager know. Explain that you would prefer keep your current card if the company can give you a competitive rate.

6. Don't make insincere threats to cancel your credit card. Be ready to transfer your balance, and ask if there are any fees for closing your account. Asking this may get your credit card company's attention.

Tips & Warnings

• Always be really polite and remember that the customer service representative is not making decisions against you personally; he merely is following company policy.

• Many companies will lower your rate once a year if you ask them to. If you haven't had your credit card for a full year, you may not be able to get a lower percentage rate.

• Do not use switching your account as a direct threat. Just let them know that you are considering it. This way, they will try to keep your business by lowering your rate. You don't want them to think that you have totally made up your mind.

• Carrying a balance on a card is always expensive, and bad for your finances. Getting a lower rate does not mean that you should carry a higher balance. Pay it off, it'll feel goooood. :)

• Many companies will lower your rate once a year if you ask them to. If you haven't had your card a full year, they may or may not be able to lower your rate.

References

• Bankrate.com: Want a lower credit card rate? Just ask Read more: Want a Lower Credit Card Interest Rate? Just Call and Ask