How to Request a Fixed Rate APR

Credit card lenders often sell their consumer debts in packages to Wall Street investors. This process is called securitization. Banks raise interest rates and fees to sustain profits while selling off debt. According to a 2008 USA Today article, "Why banks are boosting credit card interest rates and fees," there is no direct link between increased interest rates and a market need. As a result, all consumers should consider asking for a lower rate. There is only a small risk associated with asking for a lower, fixed rate: an inquiry on your credit report.

Instructions

1

Pull a recent copy of your credit report. You should also pay for a copy of your FICO score---a three-digit number between 300 and 850 that represents your overall creditworthiness. Look at the payment history of the account for which you'd like to secure a fixed rate. Creditors will want a reason to adjust the terms of your loan. If you have an excellent credit history with your lender, you'll have some leverage.

2

Decide between an oral request or a mail request. A letter is more formal, but will take longer to receive a response. Asking over the phone will also allow you to plead your case with a representative and possibly influence a supervisor to make an adjustment to your credit agreement.

3

Draft a letter of inquiry. Include your name, address, phone number, social security number and account number. Keep the letter short. Ask for a specific fixed rate, explain your reasons, and then give evidence to support why you should be qualified, such as payment history.

4

Call an account servicing representative. Ask for a low, fixed rate. Explain to the representative why you need the fixed rate and why you should be qualified. Offer to fax documents to support your claims. Speak with a supervisor if the representative will not fulfill your request.