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.
Back 1 2 3
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