How to Get Credit Card Interest Reduction

Simply asking may get you a lower interest rate on credit cards.

Credit cards are beneficial in that they permit you to manipulate your cash flow as necessary. As long as you do not spend on the card beyond what you can repay, using credit cards can also improve your credit rating. However, these benefits often come at a literal high price --- a high interest rate. You should not assume that the credit card company leaves you no power over your interest rate. With a few simple steps, you may be able to slash your interest rate significantly.

Instructions

1. Pay off any debts or handle any judgments or collections that may affect your credit rating. Credit card companies probably won't adjust your interest rate if they consider you a liability based on your credit score.

2. Make consistent payments on the card that are beyond the minimum payment, and use the card fairly regularly. The idea is to show the credit card company that you are an active, paying client, that you can handle the card balance and that you are therefore not a financial risk. This way, you'll be establishing good history with your card company.

3. Visit the websites of other credit card companies. Note the interest rates they currently offer for those with credit ratings similar to yours. Call these companies and ask for this information if it is not available on the website. Have the representatives send you a written quote by email, fax or regular mail.

4. Call your credit card company and ask to speak with someone with the authorization to modify your interest rate. Give the authorized representative your name, account number and current interest rate. Conclude your pitch for a lower rate by giving the representative the lower quotes you've obtained. Indicate that you are prepared to transfer your balance to another card if the representative can't match the quotes.

5. Transfer the balance on your card to any of the cards you found with a lower interest rate if the representative will not reduce your rate.

References

• The Simple Dollar: A Step-by-Step Guide to Getting Your Credit Card Interest Rates Reduced
• BCS Alliance: Ask for a Lower Credit Card Interest Rate