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5 Easy Steps to Lower Your Interest Rates
by Lisa Phillips
by Lisa Phillips
(4) Be Persistent
Sometimes the first person you speak with will tell you they are not authorized to lower
credit card interest rates. Don’t give up. Request to speak with a manager if this occurs.
Someone in that company can lower your interest rate. Remember to be polite when asking
to speak with upper management.
At this point if you cannot negotiate a lower rate ask the reasons for the denial and inquire
as to when you may call again to request a lower rate. Even if you threaten to close your
account, do not close your account. Remember that length of credit history is 15% of your
credit score so you do not want to close any old accounts.
Call back every few weeks if you are denied. Being persistent increases your chances of
getting your rate lowered. It shows your credit card company you are serious and ready to
negotiate.
According to the Massachusetts Public Interest Research Group (MASSPIRG), more than half
of consumers who called their credit card company to complain about their high annual
interest rates were successful in reducing those rates by an average of one-third.
“MASSPIRG” also offers a sample script:
(5) Pay-off credit card debt
Another alternative to a denial of your request would be to pay off that debt. Take any extra
cash and apply it to the principal of that debt on a monthly basis. Every extra dollar you put
towards your credit card balance means you pay less in interest rates over time. Making only
the minimum payments stretches out your debt for years.
If you only make a minimum payment of $50.00 on a credit card balance of $2,500 @ 19.9%
interest rate it will take approximately 9 years to pay the entire balance. If you double that
payment to $100.00 on that same balance and interest rate it will take only 2.5 years to pay
off that balance.
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Sometimes the first person you speak with will tell you they are not authorized to lower
credit card interest rates. Don’t give up. Request to speak with a manager if this occurs.
Someone in that company can lower your interest rate. Remember to be polite when asking
to speak with upper management.
At this point if you cannot negotiate a lower rate ask the reasons for the denial and inquire
as to when you may call again to request a lower rate. Even if you threaten to close your
account, do not close your account. Remember that length of credit history is 15% of your
credit score so you do not want to close any old accounts.
Call back every few weeks if you are denied. Being persistent increases your chances of
getting your rate lowered. It shows your credit card company you are serious and ready to
negotiate.
According to the Massachusetts Public Interest Research Group (MASSPIRG), more than half
of consumers who called their credit card company to complain about their high annual
interest rates were successful in reducing those rates by an average of one-third.
“MASSPIRG” also offers a sample script:
- Hi, my name is [Your Name]. I am a good customer, but I have received
several offers in the mail from other credit card companies with lower APRs.
I want a lower rate on my card, or I will cancel my card and switch companies.
(5) Pay-off credit card debt
Another alternative to a denial of your request would be to pay off that debt. Take any extra
cash and apply it to the principal of that debt on a monthly basis. Every extra dollar you put
towards your credit card balance means you pay less in interest rates over time. Making only
the minimum payments stretches out your debt for years.
If you only make a minimum payment of $50.00 on a credit card balance of $2,500 @ 19.9%
interest rate it will take approximately 9 years to pay the entire balance. If you double that
payment to $100.00 on that same balance and interest rate it will take only 2.5 years to pay
off that balance.
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