How to Negotiate an Interest Charge With Credit Card Companies

While credit cards provide convenience, their interest rates can be costly.

Lowering the interest rate on your credit cards can be as easy as making a phone call to your credit card company. Credit card companies want to keep their customers, but unless the customers ask, the companies have no reason to lower the interest rates they charge. Credit cards can be dangerous to a person's financial situation, so working to keep the interest rates low is always a smart idea.

Things You'll Need

• Your credit card information
• Any recent credit card offers you have received
• Phone

Instructions

1. Attempt to position yourself as a good customer so that companies have an incentive to lower your interest rate. This can be accomplished by making regular payments, maintaining a good credit score, keeping a good debt-to-income ratio (which impacts your credit score) and paying more than the minimum each month.

2. Gather all your financial information. It is important to have all your financial information before you so you can come well informed to the phone conversation. Any offers from competing credit cards can also be useful.

3. Make the call. When you make the call, it is helpful to have a target interest rate in mind. Don't sell yourself short. It is best to aim low. Studies indicate that many customers have greatly lowered their interest rates. If the person you are speaking with is unable to help you, you can ask to speak with a manager.

4. Be persistent. If you aren't successful in getting your interest rate lowered on your first attempt, you can always try again in the future, or consider other cards or other types of loans.

5. If your card won't offer you a lower rate, consider finding another card. Many credit cards offer low rates for balance transfers, and the process of applying and transferring the balance can be very simple.

Tips & Warnings

• If you are unable to get your interest rate as low as you would like, you can attempt to improve your financial situation by paying off high-interest cards as rapidly as possible.

• Interest charges can really add up if you carry a balance from month to month. This is especially true if your interest rate is high.

• Although the Federal Reserve has taken action on this issue, credit card companies have raised interest rates on credit card customers. Be aware that your interest rate may change. Also be aware that after a low introductory interest rate period expires, banks may charge a higher interest rate on the entire debt.

References

• BCS Alliance.com: Ask for a Lower Credit Card Interest Rate
• ABCNEWS: Credit Card Rate Soaring? What to Do
• Bankrate: Want a lower credit card rate? Just ask