How to Negotiate a Lower Credit Card Interest Rate

Negotiate a lower credit card interest rate by using this step by step guide.

Instructions

1. The first step to negotiating a lower credit card interest rate is evaluating whether or not you want to keep your current credit card.

   Before you take time to negotiate with your credit card company make sure you are satisfied with their service and rewards program. If you are satisfied with all aspects of your current credit card except for the interest rate, negotiating with your credit card company makes sense. Otherwise, why not just find another credit card that will provided superior service, rewards, and interest rates.

2. The second step to negotiating a lower credit card interest rate is evaluating your current interest rate, credit card balance, and credit rating.

   Shop around to see what interest rates are available from other companies. If your balance is low, you have good credit, and you find that your current interest rate is high relative to the competition, you are in a great position to negotiate a lower credit card interest rate. Write down some of the other interest rates you found for your negotiations.

3. Call your credit card company to negotiate a lower interest rate.

   You've done your homework, now it's time to talk to the credit card company. Be respectful and polite. Explain that you feel your current interest rate is high relative to other offers you have received and are considering switching companies, but would consider staying if they could lower their interest rate.

   Remember that you have the upper hand and have nothing to loose. To negotiate with a credit card company effectively you must be prepared to actually switch companies...which isn't a problem at all if you have good credit and a low credit card balance.

   For negotiating purposes, throw out an interest rate a little bit lower than the ones that you found during your research. Where you finally decide to settle depends on how you handle the situation, the personality of the credit card representative, and luck.

   Credit card companies want your business, especially if you are a good customer with good credit. Try not to take the situation too seriously and have some fun with it, you have nothing to loose!