How to Negotiate Interest Rate Reductions With Credit Card Companies

Credit card companies profit from interest rates on consumer purchases. The amount of interest you pay is based on your credit rating. Credit card companies are willing to loan money to people with high credit scores at a lower interest rate because they are less of a credit risk. No matter your current credit score, you can negotiate interest rate reductions with your credit card companies, saving you hundreds, sometimes thousands, of dollars in interest each year.

Instructions

1

Maintain an excellent payment history. If you are a customer who pays your bills on time each month, you are ready to negotiate. However, if you recently missed a payment or made a late payment, maintain at least six months of on time payments before starting your negotiations. This builds your credit history while demonstrating your loyalty to the creditor's products.

2

Research current credit card interest rates by visiting an online money management website such as Bankrate.com or Money.CNN.com. Your basis for negotiating a lower rate is obtaining a competitive rate reflective of the best options on the market for your card type.

3

Contact your credit card company using the customer service number provided on the back of your card. Follow the prompts to speak to a customer service representative.

4

Request that your interest rate be lowered to a specific rate. Advise the representative that you were offered a lower rate with one of their competitors. If they do not budge, ask to speak to their supervisor.

5

Explain to the supervisor that you are a good customer, but are unhappy with your current interest rate. Inform him or her that you do not want to, but will close your account if a competitive interest rate can not be offered.