How to Have Credit Card Interest Rates Eliminated or Reduced

Calling your credit card company can help reduce your interest rates.

If you're finding that it's difficult to get yourself out of debt, credit card interest may be a big reason. Interest rates for credit cards can be as high as 30 percent, and if your interest rate is that high, your minimum payment barely touches the principal balance. However, you may be able to get your credit card company to reduce or eliminate the interest on your credit card, enabling you to pay down your credit card balances more quickly.

Things You'll Need

• Credit card bills
• Credit card offers

Instructions

1. Look at your credit card statement and see what you're currently paying in interest. Interest rates tend to skyrocket if you've made a late payment -- a low interest rate can quickly become a 29.99 percent penalty interest rate. If you have a very high interest rate, the credit card company can probably help you as long as you haven't made a habit of paying late.

2. Gather statements from your other credit cards, as well as pre-screened credit offers that promise low interest rates. These documents can serve as leverage as you make your case to the credit card company.

3. Call the customer service. Use the number on the back of your card and connect through to a representative.

4. Explain your situation to the customer service representative. State that you think you're paying too much interest and that you'd like to get your balance paid off, but the interest is hurting your ability to make your monthly payments. Use quoted interest rates from the offers you've received and any other cards you may have.

5. Give the customer service representative a rate that you'd like to receive. If your credit is excellent and you have a solid payment history, you can shoot for a zero percent interest rate. If you're paying a penalty interest rate, The Simple Dollar website recommends trying for a 9.9 percent rate. In both cases, you're not likely to get exactly what you want, but you may be able to get some reduction in your rates.

Tips & Warnings

• If your request for a lower interest rate is denied, you can always try again in a few months. In the interim, try to pay all of your bills on time and do your best to reduce your overall balance. A more favorable credit score can convince the credit card company to lower your rate.

• If you're nervous about calling the company yourself, or if you feel you just cannot get out of debt on your own, you can try signing up for a debt management program. These programs specialize in reducing or eliminating interest rates on your behalf.

• While on the phone with customer service, remain calm and don't get upset if your request is denied. This can only hurt your dealings with the credit card company, which may result in future denials for reduced interest rates.

References

• US News: How to Lose Your Credit Card Interest Rate
• BCS Alliance: Ways to Reduce Credit Card Interest Rates
• The Simple Dollar: A Step-By-Step Guide to Getting Your Credit Card Interest Rates Reduced