How to Ask for a Lower Interest Rate on a Credit Card

If you're like most people, you probably believe that asking for a lower interest rate on your credit card won't result in an approval. But most people never receive a lower interest rate simply because they never ask for one. In this article, we will discuss how to ask for a lower interest rate on a credit card.

Instructions

1

Know your interest rate. Your current interest rate can be determined by reviewing your last credit card statement or by simply calling the 800 number on the back of your credit card and asking the representative the interest rate that you are currently being charged.

2

Become knowledgeable about competing interest rates. You must be aware of competing interest rates to determine if you're being charged a good rate or a bad rate. To determine this, visit Bankrate.com and click on the link that says "credit cards" at the top of the screen. You will then be able to input types of credit cards (low interest, cash back, balance transfer cards, etc.) and quickly compare their interest rates. Use these interest rates as your reference to determine whether you're being offered a good deal. For instance, let's say that you're currently paying 23.9% interest. Getting an interest rate of 15.9% would be a decrease of 8 percentage points.

3

Comparison shop. Next, you'll want to apply for a credit card that offers a better rate than your current card. Not only will this give you more bargaining power when dealing with your current creditor, but it will also provide you with a backup plan in case your existing creditor doesn't approve of your lower rate request. To find a card with a lower rate, you can choose one of the credit cards listed on Bankrate.com or one at another financial institution.

4

Call your existing lender. As soon as you get approved for your new card, contact your old lender at the number listed on your statement or back of your credit card. You'll need to confidently and patiently ask the representative to review your account and evaluate your current rate. You'll need to stress that you are a valued customer and have been for years and that you would like your interest rate lowered to a rate that's standard in today's economy. Remind him that you have always paid your bills on time. Politely explain that you would love to continue to conduct business with his company but only if you receive a satisfactory rate. If you meet any opposition at all, ask to speak to a manager and repeat the entire process.

5

Be ready to take your business elsewhere. If you receive an unsatisfactory response from both the representative and manager, you will need to pull out the big guns. Tell the manager that you are considering canceling your card with her firm because you received another offer from another bank. Tell her exactly what the offered rate is and ask her to match it. If she accepts, congratulate yourself because you just received a better rate. If she refuses, tell her that you would like to close your credit card account and then do it. Then, congratulate yourself because you still received a better rate with the new credit card company.