Tips on How to Negotiate a Lower Credit Card Interest Rate

Everyone who has a credit card knows that the interest rate on the card makes a significant difference as to what the borrower will pay each month. The interest rate on the card is going to determine whether the borrower is getting a good deal or a bad one. This is especially crucial if your cards balance carries from one month to the next. If you are able to negotiate with your lender a lower interest rate, you can easily save thousands of dollars a year.

Most credit card companies have began to higher interest rates and strictly tighten up the term on the card due to recent debt losses they have faced. If you have always been a faithful borrower and always paid your monthly bill, it is time to pick up the phone and start negotiating a better rate. Below are four tips that can help you successfully negotiate with your card company.

1.Understand your current terms- Before you pick up that phone and start requesting a lower rate it is immportant that you understand what you are currently paying. I would get a copy of my credit rating right away and also gather up you credit card statements. If you can prove to them that you qualify for a lower interest rate and do not deserve the high one you have been given, you will have a much better chance with the negotiations.

2.Keep your tone polite- Remember they have the control as to what happens, and no representative wants to help someone who is abusive or disrespectful. You need to understand that this will most likely be a stressful task and you will spend much time on hold with customer service. But even when your upset do not make the mistake of taking it out on the person who is on the other line. This can make all the difference as to whether or not you are approved for a lower interest rate.

3.Be ready to change companies- It is important to realize that you are never truly stuck. Credit card companies are always very competitive with each other and they understand the importance of keeping a good client. Always make sure to have a plan B if you are not able to negotiate a lower interest rate. For example, you can take the balance from your current card and transfer it to another. If you make them feel as if they are going to lose your business and take it elsewhere, you have a good chance in achieving this.

4.Never give up- Many times borrowers make the mistake of just giving up just because they could not get approved in the first month. The key factor to getting approved is patience and persistence. I suggest to keep calling every week until you can get approved for a lower rate. If you get a representative on the phone who is unwilling to help, ask for another rep or maybe even their manager. Managers and/or supervisors actually have the power to make the decision on your case, and they will have the final say on whether or not your interest rate will be lowered.