If your credit card interest rates are far higher than the national average, you will need to take steps to have your interest rate lowered. You just have to be willing to ask your credit card company for a lower rate or to move your revolving debt from a high-interest-rate card to one with a more reasonable rate.
Call the Credit Card Company
Your first move toward a lower the interest rate on a credit card is to call the card issuer. Don't talk to the account executive who answers the phone. Instead ask to speak to a supervisor because this person actually has the power to make decisions. Often, a supervisor will agree to lower the rate on the spot because credit card companies want to keep their clients happy.
The Wall Street Journal in a 2007 story cited a research report from Synergistics Research Corp. that found that about a third of consumers requested a lower interest rate on their credit cards and 75 percent received it.
What To Say
When asking for a lower interest rate, mention how long you've been a cardholder. If you've never missed a payment, you should explain that, too. Tell the supervisor that you want to stay on as a client, but that you won't be able to if the rate isn't lowered. If your reason for seeking a lower interest rate is that you won't be able to pay your monthly credit card bill without one, be sure to explain this. Your credit card company wants to keep receiving at least some money from you each month and might agree to lower your interest rate.
If You Don't Succeed
If your credit card company won't lower your interest rate, it might be time to move your balance to a new card. Many credit card companies offer new customers low interest rates for an introductory period, sometimes as low as 5 percent. Some companies will even offer zero-percent interest for an introductory period. You can transfer your credit card balance to one of these low introductory rate cards. Just make sure that you know what the new card's interest rate will jump to once the introductory offer ends. If you're not careful, you might end up paying a higher interest rate on your new card than you did on the one you left behind.
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