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How to Get Reduction of Interest Rates on Credit Cards

by Lysis

Overview

Credit card companies can try to raise rates at any time throughout the lifetime of a user's account. Even though you receive the letter in the mail that rates have raised, you can call the company and ask for a lowered rate. A lower interest rate lowers your monthly payments and helps you pay off a credit card more quickly. As long as you have a good credit score, a high income-to-debt ratio and reasonable balances on other credit cards, you can lower your credit card interest rates.

Step 1

Create a spreadsheet that highlights each credit card with the interest rate and how much money you owe each month. Sort these credit cards with the highest interest rate first. The credit card with the highest rate is the one you want to tackle first.
Step 2

Do some research on the current interests rates and your credit score. If your overall payment record is good, this is a selling point for a lower interest rate. Also research any credit cards that are willing to give you a lower rate. This can be used to negotiate a lower rate.
Step 3

Pick up the phone and call the first credit card company on your spreadsheet. Ask the customer service representative for a lower interest rate. The representative will look into your credit score and payment history to decide if you are eligible to receive a discount.
Step 4

Speak to a supervisor if the customer service representative does not give you a discount. Occasionally, a supervisor will also review your credit information and override the decision of the customer service representative.
Step 5

Switch balances to a new credit card with a better introductory rate. If you aren't able to receive a better interest rate from your current card company, you can use a credit card found from step 2 to find a better interest rate. Transfer your balance to this card until the introductory rate is over. In some cases, the following interest rate is better than your current credit card rate.
Step 6

Switch your balance to a card you already hold that has a lower rate. If your card company won't negotiate with you and you don't want to open a new card, you might be able to transfer the balance to another card you already hold that has a lower interest rate. This is generally only possible if the new card is not issued by the same company that refused to lower your rate in the first place.