How to Lower Your Charge Card Interest Rates

Major credit cards such as Visa, MasterCard, Discover and American Express want to remain competitive within the credit card industry. One way card issuers remain competitive is with low interest rates and offering attractive benefits. If you have a high interest rate and want it lowered, ask your credit card issuer to match or beat a competing offer. Doing so will save you considerably, especially if you rely heavily on your card for most of your purchases.

Instructions

1. Comply with the terms and conditions of your card. Demonstrate a willingness to pay your minimum payment on time, maintain a low balance and comply with the terms and conditions.

2. Write a letter to your credit card issuer requesting a lower interest rate. Also indicate that you have offers from competitors promising lower rates.

3. Be specific. Provide the name of each credit card issuer along with the Annual Percentage Rate (APR) and benefits you have been offered.

4. State the reasons why you deserve a lower interest rate. For example, if you've made all or the majority of your minimum payments on time, have never incurred late or over-the-limit charges, have a low debt-to-income ratio and are in good standing with your credit card issuer, offer these reasons as justification for your request.

5. Explain that without a lower interest rate, you'll be forced to transfer your balance to a competitor card and discontinue your current credit account.

Tips & Warnings

• The lower your interest rate, the more you will save over the life of your credit card.

• If your credit card issuer denies your request for a lower interest rate, ask again in six months.

• Depending on your payment history, your credit card issuer may or may not grant your request for a lower interest rate.

References

• Bank Rate: Requesting a Lower Interest Rate
• BCS Alliance: Ask for a Lower Interest Rate
• Credit Cards Interest: How to Request a Lower Interest Rate