If you're one of the approximately 35% of American credit card users who carry a balance from month to month, you might be looking for ways to lower that payment. Lowering your interest rate with your credit card issuers might be surprisingly simple. To reduce your credit card interest rate and save money, follow these five actions. Two typical costs associated with opening a credit card are depicted in the chart below as two APR scenarios: 15% and 20%.
View the credit card statements you have
Start by gathering your credit card statements. Before calling your credit card provider and requesting a lower rate, it's crucial to be aware of your credit history, payment schedule, and other crucial information. Make a note of your current interest rate so you can bargain, and you might also want to evaluate where you stand by comparing it to the average credit card interest rate. You can reach customer service at the number listed on the statement. Call the number and select the operator-speaking option. The operator ought to be able to put you in touch with the appropriate party so they can work out your rate. Despite the fact that physically picking up the phone and phoning your credit card company may seem like a lengthy—and possibly intimidating—process, consider this: you might be able to reduce your credit card bills by hundreds, possibly even thousands, with this phone call.Request a reduction in the card's interest rate
This is the time to start negotiating your rate after you are connected with a representative. You might wish to note your solid payment history, your devotion to the business, or, if you have one, your excellent credit rating. When requesting an adjustment in interest rates, be courteous. The customer support agent won't be as eager to assist you if you scream or act aggressively. In these circumstances, politeness goes a long way, but it's also crucial to be persistent. Remember that if you have a history of missed payments, a bad credit score, or a large amount of unpaid debt, you might have trouble acquiring a lower rate. Generally speaking, your credit card issuer won't reduce your interest rate to zero since it wants to keep profiting from your account. It may, however, lower your interest rate if you have a strong argument because it likely also wants to keep you from defaulting.Inquire About Being Eligible for a Lower Interest Rate
Asking for a reduced interest rate might not work, so you should look for further facts. Ask the agent what you can do to become eligible for a lower interest rate in the future if your application is being rejected due to late payments. It's possible that all it takes to qualify is a little more time and on-time payments. You could potentially make another call in a few weeks. It won't hurt to request a review. You might want to explain that you can transfer the funds to a card with a 0% interest rate or another low rate of interest.Retry if necessary
Don't stop there if you are successful in lowering your interest rate. The business might be ready to give an even cheaper interest rate if you try again in a few months. If your rate was initially 18 percent, they may reduce it to 12 percent.If you call them again, they may reduce it to 9%.Over time, you might save a ton of money by doing this However, this might change depending on the status of the economy, interest rates, or the current financial environment.Pay all your bills promptly and in full
Always pay your bills completely and on time (unless you have gotten specific permission to skip a payment). If you don't make your payments on time, credit card issuers may increase your rates. If this is also the case, they will be less inclined to reduce your interest rates. It's crucial to routinely make on-time and full bill payments for this reason. You will not be eligible for a lower interest rate if you are viewed as a credit risk. Simply put, lowering your credit card interest rate is accomplished in a manner that is very similar to improving your credit score. To avoid being too close to your credit limit, for instance, you should concentrate on making your payments on time and working to reduce your balance.Alternate Strategies
If all else fails, you might be able to acquire a balance transfer credit card with a low or introductory APR at a different bank. Most debt transfer cards require at least fair credit, and you'll want to be sure you can pay off your bill before the promotion period expires. You might also obtain a consolidation loan with a reduced interest rate and use it to pay down the amounts on your credit cards. If you select this strategy, you must entirely stop using your credit cards to avoid having to make payments on both your consolidation loan and credit cards at the same time.