Lower Your Interest Rate

For some people, being in debt has become a way of life.  Nearly 40% of Americans who have a credit card do not pay the balance in full every month.  As a result, they will end up paying interest on their balance.  Some people are “lucky” to have a reasonable rate, but countless others are not so fortunate.  The average interest rate is 14.71.  To some this may seem like a great rate compared to what they have now.  What can you do to lower your rate and begin to pay down that debt faster?

Lowering your interest rate can be surprisingly easy.  First, be sure that your account is current and that you have a payment history that shows that you have made all of your payments on time.  Even if you have missed a payment in the past it is still possible to get a rate reduction.  The further in the past that happened, the better.

Gather your credit card statements and call the customer service number.  Be sure you know your account number, balance and current APR (Annual Percentage Rate).  Having numbers to reference will make you a better negotiator.  When calling simply ask for a reduction in your interest rate.  Be sure to point out your payment history if you’ve made all of your payments on time.  The most important thing is to be courteous.  They take calls from people all day long asking the same questions and by the time you call there is a fair chance that they have had some bad customers.  Dealing with someone who is respectful and polite will be a nice change of pace for the customer service employee.

If they won’t lower your rate be sure to ask them the reason why.  You want to know what you can do in the future to improve your chances next time you call.  If you are still not satisfied and wish to pursue the matter further, ask to speak with the supervisor.  This may or may not get you anywhere, but it is worth a try.  The same thing applies when talking to the supervisor, be polite.  If you get upset or rude, they are not going to deal with you. 

If you still don’t succeed, thank them for their time and hang up.  You can (and should) call back in a couple of weeks.  Mention that you have another card that is allowing zero percent balance transfers and again remind them that you really enjoy being a customer.  It doesn’t hurt to bluff once in a while.  Eventually it will pay off and you will get that lower rate.  If at first you don’t succeed, try, try again.

Finally, don’t stop there.  Keep calling every couple of months to see if they can lower your rate again.  If you started out with a really high rate it is possible to keep slashing the number.  Be absolutely sure to make every payment on time otherwise all of your hard work will have been for nothing as they will increase your interest rate as soon as you don’t get your payment in on time.

Good luck!