How to Write a Letter to Get a Better Interest Rate

Put your request in writing with confidence and credibility.

You are hardly alone if you have tried, and failed, to get a better interest rate on your credit card by phone. Many companies still ask that you "put your request in writing" to, ostensibly, protect your privacy and ensure that it is really "you" who is making the request. So, without begging -- and certainly without threatening to cancel your card if your request isn't granted -- write a persuasive letter to try to secure a better rate. Sometimes, the simple fact that you took the time to write the letter in the first place will impress a company enough to reduce the rate without reading beyond the first paragraph.

Instructions

1. Select a businesslike font for your letter, such as Arial or Tahoma in 11 point. Set 1-inch margins on the top, bottom and sides. Set up the letter in block style, with no indentions. Single-space between lines and double-space between paragraphs.

2. Write the return-address heading, which includes your address (not your name) followed by the date.

3. Write the inside address.

4. Write the salutation. If you don't know the person's name, write a generic salutation, such as "Dear Credit Manager" or "Dear Credit Supervisor."

5. 

   Do not even bother saying how much an interest rate reduction will save you because, frankly, the credit card company does not care.

   Devote the first paragraph to the purpose of your letter, being specific and direct. In this case, so much the better if you know exactly the interest rate you desire rather than leaving the percentage to the powers that be. (After all, would a 0.0025 rate reduction make you happy? Probably not.) So be forthright: "As a five-year Visa card customer, I am writing to secure a reduction in the interest rate I am being charged, from its current rate of (XX) percent to (XX) percent."

6. Strive for a polite and confident tone in the second paragraph as you explain why you believe you are entitled to a rate reduction: "As I'm sure your records will confirm, I have been late on my monthly Visa payments only twice in five years -- and then by only a matter of a few days. Otherwise, I have a pristine payment record with Visa."

7. Refer to any supporting information in the third paragraph, ensuring that the information is credible. If it's not, don't use it, for it will undercut your best efforts: "Furthermore, I understand that you are offering the interest rate I seek to new Visa cardholders. Therefore, based on my credit history and your current promotional offer, I believe I should receive an interest rate reduction."

8. Lodge any emotional appeals in the fourth paragraph. If you have been pleased with Visa's customer service over the years, say so without being gratuitous. You also may wish to plant the idea -- in a non-threatening manner -- that, as a consumer, you have many credit choices available to you: "I am pleased to say that I have been consistently satisfied with the helpful attitude of Visa's customer service representatives. Though I have called Visa's 800-line only a few times in five years, they have always treated me with friendly courtesy. For these reasons and others, I very much would like to continue my relationship with Visa in the future."

9. Write an optimistic closing paragraph that isn't afraid to show your sense of humor: "Should you have any questions about this matter, please do not hesitate to call me at (your phone number). I thank you in advance for your interest -- pun intended -- in resolving this issue to my satisfaction as well as for your time and consideration."

10. Write a closing, such as: "Sincerely yours" or "Sincerely." Space four times.

11. 

    If your first request is denied, don't give up. In a few months, try getting a rate reduction again.

    Type your name. Sign your name in the space between the closing and your typed name.

Tips & Warnings

• Read your letter aloud, then proofread and edit it to ensure that it is error-free.

• Keep a copy of the letter for your records.

References

• "The Little, Brown Handbook"; H. Ramsey Fowler, Jane E. Aaron and Kay Limburg; 1992
• "The New St. Martin's Handbook"; Andrea Lunsford and Robert Connors; 1999