How to Negotiate for a Lower Interest Rate on Your Credit Card
If you cannot pay your card balances, the interest rate often becomes a fearful element. Interest rates can affect your finance charge or the penalty fee that you will be required to pay as soon as you start carrying balances. The higher the interest, the more overwhelming the finance charges can become. Even if you only miss a single payment, it could easily pile up and lead to debt. It is best to be prepared by getting a lower interest rate.
The good news is that you can actually negotiate with your lender regarding your current rate. It is usually fast and easy€"and free as well. Though there is no guarantee that your creditor would grant you your request, there's no harm in trying. When done right, you may be able to free yourself from your worrisome rate.
How to Win Your Case
Before attempting to confront the war on interest rates, be prepared with your artillery. Not everyone who asks for a lower interest gets approved. However, you can strengthen your case if:
You have an old piece of plastic in your wallet
You have been with the same company you plan on calling.
You have an established credit history.
You have never been late with your payments.
Long-time customers who have been good payers have higher chances of getting their request granted. If you have missed a number of payments, you can still make the call.
NO Doesn't Mean NEVER
Once the customer representative tells you that they cannot lower your interest rate, do not be disappointed. Most of the time, when they say €no,€ it is because you have not been a good card holder. If you have missed a few payments, you can make up for your misbehavior. Make at least the minimum payments for about six months or so. Then, you can make that call once again to renegotiate your interest rate.
A Good Script Can Help
Before you call the credit card company, you may want to have your dialogue ready. Speak with confidence and try not to sound like you have been rehearsing your lines. Here's a good way to talk to a customer representative:
Introduce yourself by giving your name and your account number.
State your request regarding your interest rate.
You can add that you have been offered a new credit card that comes with a lower rate. For instance, you can say, €I just got an offer to switch for a new card and it has an interest rate of only 6%. I would love to stay with you, but my interest rate here is 19%.€
Declare your advantage by saying that you have been a good paying customer for several months now or that you have been paying your minimum balances consistently.
The card agent may tell you that you already have their best rate. This is where you should speak to the supervisor. Once the supervisor is on the other line, you can repeat your script. Remember that he or she may not grant you the rate that you want, but it is possible to get a better rate at this point. If so, you should take the offer even if it is just a little lower than your current APR.
The good news is that you can actually negotiate with your lender regarding your current rate. It is usually fast and easy€"and free as well. Though there is no guarantee that your creditor would grant you your request, there's no harm in trying. When done right, you may be able to free yourself from your worrisome rate.
How to Win Your Case
Before attempting to confront the war on interest rates, be prepared with your artillery. Not everyone who asks for a lower interest gets approved. However, you can strengthen your case if:
Long-time customers who have been good payers have higher chances of getting their request granted. If you have missed a number of payments, you can still make the call.
NO Doesn't Mean NEVER
Once the customer representative tells you that they cannot lower your interest rate, do not be disappointed. Most of the time, when they say €no,€ it is because you have not been a good card holder. If you have missed a few payments, you can make up for your misbehavior. Make at least the minimum payments for about six months or so. Then, you can make that call once again to renegotiate your interest rate.
A Good Script Can Help
Before you call the credit card company, you may want to have your dialogue ready. Speak with confidence and try not to sound like you have been rehearsing your lines. Here's a good way to talk to a customer representative:
The card agent may tell you that you already have their best rate. This is where you should speak to the supervisor. Once the supervisor is on the other line, you can repeat your script. Remember that he or she may not grant you the rate that you want, but it is possible to get a better rate at this point. If so, you should take the offer even if it is just a little lower than your current APR.
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