Call and Ask for a Lower Credit Card Rate
It never hurts to call and ask for a lower interest rate and saving money on interest is certainly worth the effort. The credit card industry is very competitive and if you are a good customer, they want to keep your account. However, they aren't going to just lower your rate as a gift to a good customer, you have to make the call and possibly several calls to get a lower rate.
Requesting a lower rate is pretty simple, even if you don't like negotiating and this seems out of your comfort zone. All you have to do is call the number on the back of your credit card or bill. Tell them your name and that you have been a good customer but you would like a lower rate. You have received several offers with lower rates in the mail and have researched cards with lower rates online. You want a lower rate on your card or you will switch to another card with a lower rate- what can they do to help you out?
If the first person you talk with tells you they can't lower your rate, try again in a week or a month and talk with someone else who may be more cooperative- this is a case where persistence helps. If you are turned down several times but feel you have a good case, talk with a supervisor.
When should you ask for a lower rate?
-The average APR is around 14.9%. If you have a good payment history and your APR is over 12%, call and ask for a lower rate.
-If you received a high rate for your first credit card but have paid on-time and your balance has been less than half of your credit limit for 6-12 months, call and ask for a lower rate.
-If your card started out with a low rate, but it has increased several times, call and ask for a lower rate.
-If you received a default rate or very high rate, but have built a good payment history and improved your credit score, call and ask for a lower rate. Not sure why your rate jumped to the default rate, call and ask for an explanation and a lower rate.
-If you have had the same card for several years, your balance is under 30% of your credit limit and you have been satisfied with your rate, call and ask for a lower rate. You may be surprised that you can get a lower rate.
What difference will it make? Here is an example. If your balance is $5,100 you will pay $760 in interest per year if your APR is 15%. If your rate is 11%, you will pay $560. That saves $200 per year- you can save even more by applying that $200 to pay down your balance.
Not everyone who asks will receive a lower rate; newer customers with high balances may be turned down, but it never hurts to ask. The goal is to have a card with a low rate that meets your needs and keep it. A long history with your credit card is good for your credit score and gives you power to ask for lower rates or waiving the occasional late payment fee.
Requesting a lower rate is pretty simple, even if you don't like negotiating and this seems out of your comfort zone. All you have to do is call the number on the back of your credit card or bill. Tell them your name and that you have been a good customer but you would like a lower rate. You have received several offers with lower rates in the mail and have researched cards with lower rates online. You want a lower rate on your card or you will switch to another card with a lower rate- what can they do to help you out?
If the first person you talk with tells you they can't lower your rate, try again in a week or a month and talk with someone else who may be more cooperative- this is a case where persistence helps. If you are turned down several times but feel you have a good case, talk with a supervisor.
When should you ask for a lower rate?
-The average APR is around 14.9%. If you have a good payment history and your APR is over 12%, call and ask for a lower rate.
-If you received a high rate for your first credit card but have paid on-time and your balance has been less than half of your credit limit for 6-12 months, call and ask for a lower rate.
-If your card started out with a low rate, but it has increased several times, call and ask for a lower rate.
-If you received a default rate or very high rate, but have built a good payment history and improved your credit score, call and ask for a lower rate. Not sure why your rate jumped to the default rate, call and ask for an explanation and a lower rate.
-If you have had the same card for several years, your balance is under 30% of your credit limit and you have been satisfied with your rate, call and ask for a lower rate. You may be surprised that you can get a lower rate.
What difference will it make? Here is an example. If your balance is $5,100 you will pay $760 in interest per year if your APR is 15%. If your rate is 11%, you will pay $560. That saves $200 per year- you can save even more by applying that $200 to pay down your balance.
Not everyone who asks will receive a lower rate; newer customers with high balances may be turned down, but it never hurts to ask. The goal is to have a card with a low rate that meets your needs and keep it. A long history with your credit card is good for your credit score and gives you power to ask for lower rates or waiving the occasional late payment fee.
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