How to Lower My Interest Rates on my Existing Credit Card
You may be able to save hundreds, or even thousands, of dollars by making a quick phone call and asking for a lower interest rate on your existing credit card, according to Bankrate financial writer Lucy Lazarony. Banks generally will not lower interest rates automatically, even if you are a good customer. You must call, specifically request a reduction and make a case why it should be granted. Asking for a lower rate does not cost anything, and it will pay off in savings on each payment if it is approved.
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Instructions
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Assess whether you are likely to qualify for a lower interest rate on your existing credit card. BCS Alliance, a debt reduction website, explains that you need a high credit score and good record on the card, with no delinquent payments. The balance should not be too high, and you should be paying more than the minimum requirement each month. The credit card should be a regular account, not a secured credit card that required you to put up collateral or a sub-prime account for people with bad credit.
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Compare your current credit card interest rate to competing offers. You need to be paying more than the market average to have a good chance for a reduction. Check offers that come in the mail and search through online credit card websites to get a feel for how your rate stacks up against what you can get elsewhere.
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Call your credit card company and navigate the customer service menu until you reach a live agent. Ask if that person has the power to change your interest rate. If not, ask to be transferred to the correct person or department.
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Ask for a rate reduction, and spell out all the reasons why you should receive it, the Motley Fool financial website advises. Refer to your excellent past records and explain that you have found better offers at many other banks. Tell the agent you prefer to keep your existing credit card but that you feel your interest rate should be lowered based on your account history.
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Request a supervisor if the agent denies your rate reduction, BCS Alliance recommends. Phone agents are sometimes instructed to give a scripted response claiming the rate cannot be lowered, even if you have compelling reasons. A supervisor has more latitude and is more likely to listen to your specific arguments.
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Tips & Warnings
Howard Strong, author of the book "What Every Credit Card User Needs to Know," advises being persistent if your rate reduction request is denied. Call again in a few months, and keep calling until you are successful. Strong explains that it's often a matter of connection with the right customer service representative.
