How to Get a Credit Card Interest Rate Decrease
Think about it; when you’re making a tidy return off an investment every month, are you inclined to offer to take less? Neither are credit card issuers. However, they sometimes will; especially if they think you’re about to move your account to a competitor.
Naturally though, there are certain parameters you’ll need to meet before you inquire. So, here’s how to get a credit card interest rate decrease.
1) Know What You’re Dealing With
Before you contact your issuer, check your credit score to make sure it’s good. Most rating agencies consider a 700 or above admirable. If you’re rocking an 800 or better, your score falls into the excellent range and no issuer in their right mind will want to see you go. You’ll also want to bone up on the terms of your card agreement, your current limit and your current balance.
2) The Factors They Consider
When you hit them up for the decrease, the first thing they’re going to do is look to see how cool you’ve been about holding up your end of your deal. They’ll consider the amount of time you’ve had the card, the credit limit associated with the account and how much of that limit you currently owe. They’ll also look to see how much you owe other creditors and whether you’ve ever been late with a payment. If all of your accounts say “pays as agreed” and your balances are in the range considered reasonable, you’re good to go.
3) See What Others Have to Offer
Test the waters a bit to see what you can get from other issuers. If your credit game is strong, they’re going to want you on their books. Get offers in writing so if your card company says it’s already giving you the best possible deal, you can show them a better one. Just make sure all the guidelines are the same in terms of fees, credit limits, due dates etc. In other words, you want to make sure you’ve eliminated the wiggle room.
4) Make the Call
The number you need to dial is typically listed on the back of the card. After surviving the seven circles of voicemail hell you’ll endure, politely break it down for the representative as follows:
- Tell them how long you have the card.
- Tell them your current interest rate.
- Inform them of your credit score.
- Tell them you’ve always been good about making the payments on time.
- Inform them that you’ve been getting offers to switch and disclose the lowest interest rate and most favorable terms you’ve been offered.
- Tell them if they beat it, you’ll stay with them. But if they can’t, it only makes sense for you to go with the other company.
Once you’ve laid out your case, stop talking and listen.
If you’ve covered all the steps outlined above, you’ll win regardless of what they say. If they can come up with a deal better than the best one you found, you’re golden. If they can’t, take that other deal and you’re golden.
Either way—you’re still golden.
When you think about it, it just makes good financial sense to do this, regardless of what’s going on in your life. Keep in mind, while things are good right now, things can sometimes turn on a dime and your debts can get out of control. If that happens, a company like Freedom Debt Relief can help you ease your debt load to enable you to get your finances back in order.
Either way, knowing how to get a credit card interest rate decrease is a useful skill to have, and it’s one you can implement today.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.