How to Get Creditors to Lower Interest Rate

Credit cards come in handy for high-price purchases, but they also can get you into unexpected financial trouble. A single late payment can cause the interest rate to increase by as much as 10 percent, which ultimately increases your monthly payments while at the same time reduces the amount that you actually pay on your debt. However, credit card companies will almost always work with you to reduce a high interest rate.

Instructions

1

Call your creditor and ask them to lower your interest rate. Explain to them why you feel the interest rate is too high and why a lower one will help you make payments more easily. Ask for a rate that's close to the national average. The average differs daily, but it usually stays between 12 and 15 percent.

2

Tell them you are going to transfer your balance to a different company if they will not negotiate with you at first. Credit card companies are often more likely to reduce an interest rate than risk losing a customer.

3

Ask if they will temporarily reduce your rate, perhaps for a three- to six-month period, if they still don't want to work with you. Explain that you will continue to pay the same amount as normal, but the lower rate will help bring the balance down and, ultimately, make future payments smaller once the temporary rate returns to normal.

4

Try again every week if they still won't negotiate and you do not want to actually transfer your balance to a different credit card. Persistence and patience is the key to success.