February 22, 2010, new rules for credit card companies went into effect. While the new law affecting credit card companies protects some consumers from outrageous interest rates, the protection offered under the Credit CARD Act of 2009, is limited.http://www.creditcards.com/credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php Most consumers would still benefit from lower interest rates on their cards.

Lowering the interest rates on your credit cards means you'll pay less over time for any balances you carry over month to month. If you had $1000 in debt, for example, and lowered your interest rate from 16% to 11%, you'd save a total of about $300 over the life of the loan assuming minimum monthly payments. (You'd also pay off your debt a year faster.) How to lower your credit card rates will help you convince your credit card company to lower your rate, leading you to significant savings.

Convincing your credit card company to lower your rates will not only reduce your interest payments each month, but will reduce your overall debt. Lowering your credit card rates is possible even if you have little confidence as a negotiator. You'll simply need to do some research and make a few phone calls.

Disclaimer: The content in this page is not a substitute for professional financial advice. Please contact a finance professional before using the information presented here.

• You can't begin to reduce your interest rates if you don't know what they are. Before you can begin to reduce your rates, you'll have to do some personal detective work. If you've kept your statements organized, this should be fairly easy, but even if you haven't, you should be able to get all the information you need.

Do you know what your current interest rates are on the credit cards you carry?

1. Schedule a time when you can work uninterrupted. (If you have to call the credit card companies, make sure this is within normal business hours.)
2. Gather your bills or call your creditors for up to date information on each account.
3. Make a table or spreadsheet detailing exactly what your interest rates are for each card.http://www.google.com/google-d-s/intl/en/tour1.html
4. Organize them from highest interest rate to lowest.
5. Also determine what your balances are on each of these cards.

• Knowing the average rates will help you bargain with your credit card companies.

1. Experts advise looking at CNNMoney.com's card search tool to see which companies are currently offering the lowest rates. http://money.cnn.com/2005/12/12/pf/resolution3_debt_0601/index.htm http://www.cardweb.com/ Cardweb.com http://www.bankrate.com/cnn/rate/brm_ccsearch_advanced.asp?menu1=Select+a+card+type&SubmitCC.x=28&SubmitCC.y=8
   • • If you're searching for a new credit card, you can also use CNN Money's card search tool to select additional features that are important to you. http://www.bankrate.com/cnn/rate/brm_ccsearch_advanced.asp?menu1=Select+a+card+type&SubmitCC.x=28&SubmitCC.y=8
2. You might have also received a credit card offer through the mail that offers a low rate and for which you have been pre-approved.
3. Also know what kind of customer you have been. Have you paid your bills on time, all the time? Have you been a customer for a long time? If you have been a good customer, you are at a greater advantage when negotiating with your credit card company.http://www.kiplinger.com/columns/ask/archive/2007/q1128.htm
4. Anyone with a credit score above 750 should qualify for a credit card interest rate of 10% or less. http://money.cnn.com/2005/12/12/pf/resolution3_debt_0601/index.htm

• You'll need to speak with your credit card company and request a lower rate over the phone.

1. First, make yourself a script.
2. Oprah's Debt Diet provides an easy script you can follow. http://www2.oprah.com/money/debtdiet/money_debtdiet_main.jhtml http://www2.oprah.com/money/debtdiet/steps/debtdiet_steps_03_b.jhtml
3. Your discussion points should include:
   • • What your current rate is.
     • Lower rate offers that you've discovered in your research.
     • Can your current card issuer match that offer or do better?
4. If you have multiple credit cards, and one has a particularly lower rate than the others, you can also threaten simply to transfer your balances from higher rate cards.
5. Call the customer service phone number printed on the back of your credit card, or find the correct phone number on your card's website.
6. Be polite, but firm. You need to convince this customer service agent that you are serious about taking your business elsewhere.

• If you don't get anywhere with the customer agent you speak with, it's time to move on.

1. If you reach a dead end with your customer service representative, politely ask to speak with a supervisor.
2. A supervisor may have greater authority to lower your rates and might be more attuned to the risks of losing a customer.
3. Repeat your script with the supervisor, making sure to mention the specifics of the other offer(s) you are contemplating. http://www2.oprah.com/money/debtdiet/steps/debtdiet_steps_03_b.jhtml
4. Reason with the supervisor. If he/she is not budging, use common sense. Saying something like, "Look, we both know it's more cost effective for you to keep me as a customer as opposed to recruiting someone new. I'd rather stay with this company, but it's just not worth it at my current rate."
5. If he/she still won't lower your rates, call back in a month. http://www.usnews.com/blogs/alpha-consumer/2007/9/21/asking-for-a-lower-credit-card-rate.html
6. If persistent requests still fail, you should exercise one of the better offers you've found.

• If you still aren't getting the rates you want, it might be time to switch cards.

1. Many credit card companies offer low introductory rates to entice new customers.
2. Since you've already done the research on the deals available, you should be able to find a card with a favorable interest rate quickly. Go back to CNN Money's search tool if you need to compare opportunities. http://www.bankrate.com/cnn/rate/brm_ccsearch_advanced.asp?menu1=Select+a+card+type&SubmitCC.x=28&SubmitCC.y=8 card
3. Be sure to check all the fine print regarding balance transfers. If fees are reasonable, and your low introductory rate isn't going to skyrocket after the new government imposed waiting period of one year, then it's probably a good idea to switch. http://www.creditcards.com/credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php