What are the best ways to negotiate lowering your interest rates on a credit card?
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M$6 Answers
1. Ask for a lower interest rate if you have been with the same company for at least 4 or 5 years up. They never lower interest rates for clients who are just in their 1-3 years.
2. You can only be qualified if you never missed a due date and never went beyond your limit.
3. Credit card companies are not threatened when people tell them they will switch to another company because they were offered a lower interest rate. They also offer the same thing to competitor's clients and people always jump from one company to another. Credit and collection is handled by a different department who are the people that go after you when yo have unpaid dues.
4. Credit card companies do not want client who pay their bills in full. They are not charged with finance charges and they always qualify for freebies and other benefits. Good paying customers are the bank's least priorities. They love people who just pay the minimum because they are the ones who get the highest finance charges.
5. Instead of asking for a lower interest rate, credit card companies offer you a higher credit limit or even waive a portion of your annual fee. This privilege is also rare and everything is based on your spending and paying habits.
6. Even if they lose 10 clients a day who transfer to other banks who offer lower interest rates, they don't care. When you see how many people who apply for a new card, I'm pretty sure 50 a day is a very conservative number. And they love it when you miss your due date or you go over your limit, it is their perfect reason for them to jack up your interest rate to the maximum allowed level by the government.
7. Need I say more? Personally I only own 1 card. Have a low credit limit and never asked for a lower interest rate. If I reach 5 years with the same company, I might try or just jump to another that offers a lower rate. Balance transfers are very common. I just try my best to limit my spending and pay on time.
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M$
While their first attempt to do so was not successful, they were eventually able successfully accomplish what is considered a great feat by most. A couple of the factors they used as leverage was the length of time they had been with the company along with their great payment history as well. A good payment history can go a long way in this situation. When that didn’t work they threatened to transfer their balance to other creditors who were offering lower interest rates. At that point, the card issuer relented and offered them a lower rate.
However, while they were successful, this is not to say that everyone will have success in trying to lower their interest rates because so many people are applying for credit on a daily basis so losing one account may not be that great of a concern to the credit card company. It just depends on the situation. I’ve also attached a link where this question was asked as well for you to review. It goes into much greater detail…
http://www.askmrcreditcard.com/creditcardblog/how-to-lower-the-apr-on-your-credit-cards/
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M$
Basically they just pretty much threatened to move their balances to another card with a lower annual percentage rate. Many times the credit card companies will listen to such threats because they don't want to lose the person as a customer. Even if they lower their rates, they are still making money off of you, so better for them to do that than to allow the person to cancel the account and go to another, possibly competing credit card company.
I haven't had the nerve to call and demand lower rates, but it might be something worth trying since I know a few people who have done this. A few times the company hasn't given into the threat. If that happens it's not a big deal. Just go through with closing the account and transfer over to another card with better rates.
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M$1) Decrease your credit limit to however much you currently have on the card
2) Immediately RAISE your rate or raise your rate if you use the card again - usually this is done through the mail with new cardholder terms, which, if you reject, will force the closing of your account and you will have to continue to pay it until paid in full.
Neither of these things will help your credit.
If you're already in a bad situation and you can't afford to pay your bill, then the company will have a department for that - a credit workout department. You may be able to negotiate a lower rate, but it will likely come with a requirement that you discontinue buying anything with the card. Additionally, you will need to provide evidence that you can't afford to pay the bill or a specific circumstance - like losing your job. Then they may be willing to lower your rate to recover as much as possible from you.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
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Another thing to do is to search for lower alternatives. This is because when you call the company, they have to know that you have done your own research and they might lose you to other companies, if they do not succumb to your demands.
When you call the credit company, be polite and let them know that you need the lower rate to help you save some money. Make them aware of the other alternatives you found in other companies, but if you didn’t find a lower rate outside, just try to be as convincing as possible.
If you get a negative response, try again after the ending the call. You might be lucky to get a different person and a better offer. But if that is not the case, ask to speak with a supervisor. If you still get a negative response, you’ll have to sit down and weigh the options. If you would be better off with another company, it is time to close your account with this one.
You might be surprised that when they notice that you are about to leave them, they might give you a rate reduction.
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M$
