How to Negotiate a Low Credit Card Interest Rate

Credit card companies periodically review accounts, and often they'll reward card holders with good credit by lowering the interest rate on the account. However, some credit card companies do not arbitrarily reduce interest rates. Instead, card holders have to contact the company and request a reduction. You may have to use a few negotiating skills to sway their decision.

Instructions

1

Wait until your account is in good standing before requesting a rate reduction. A recent late or missed payment can ruin your chances of getting a lower interest rate. If you've had past credit problems, wait until your credit improves and then request a better rate.

2

Improve your chances of getting a lower rate by paying off debt. The risk of delinquency is higher when credit cards are maxed out or near the limit. Aim to keep balances below 30 percent of your credit limit.

3

Call your credit card company. Once you're ready to ask for a lower rate, you can negotiate directly with the company.

4

Explain why you qualify for a lower rate. Some credit card companies issue rate reductions with little hassle. If your company is hesitant to lower your rate, provide sound reasons as to why it should grant your request. Mention how many years you've been a cardholder. Bring attention to your good payment record and low balance.

5

Ask for a supervisor if you are not getting anywhere, and repeat your request for a lower interest rate. Ask for a short-term rate reduction for six months or one year.

6

Mention other credit card offers if you've received offers for lower rates. Credit card companies want to retain customers, and they may issue a reduction to keep your business.