Jan 10

Tip For Lowering Your Credit Card Interest Rate

If you, like most people, carry a credit card balance from month to month, you are probably paying a pretty hefty interest rate. Here's how to lower it -- start getting tough with your credit provider. To get in the mood, think of all your hard-earned cash they've been siphoning off every month at 10%+...

Things have become so competitive in credit card land that the credit providers aren't so quick to let you go if you threaten to cancel your card. So:

1) Note what interest rate you are paying on your current card's balance.
2) Do a little research and find another card that offers 0% balance transfers and no annual fee (here's a good place to start). Then find out what the interest rate will become after the initial (oftentimes, 6-month) period.
3) Mentally prepare yourself for transfering to the new card.
4) Call your current card's customer service department and inform them that you're planning to cancel the card because their interest rate is too high. You'll probably be transferred at that point to an agent whose whole job it is to convince you otherwise.
5) While talking with this agent, be firm -- tell the agent you're planning to leave, but would consider staying if s/he offers you a drop in the interest rate to under the other card's rate. Don't tell them what card it is -- they're armed with reasons why that's a bad card for you, and that's not the conversation you want to have with them . Stay focused on the issue of lowering your current rate.
6) If the agent goes for it, great. If not, great too -- move to the other card. The first one doesn't apparently value your business.

Just one other thing to consider -- cancelling a credit card can effect your FICO credit rating. So all things being equal, it's better to wheedle a good rate out of your existing card provider than make the switch.

Comments

  • Hey Smith, I talked to Credit Counselors and yes you lowered my rates but increased my payments. This didn't take into acct all of the other bills I had that you wouldn't roll inot the plan. If I didn't have the money before where do you think I am going to get it now???? Explain how keeping the same rate, but lowering the payment $10 is going to help me out????

    Mar 01
  • I have closed all of my credit cards due to having to opt out of the rate increase. I just received my WAMU statement and the rate has increased to 34.45%. Are you kidding me???? I see why they didn't send me an opt out notice.....

    Mar 01
  • Hey Smith... learn to use proper English if you want any credibility in this forum.

    Feb 16
  • right now our 1-800 number is under process of construction,
    but if u r interested do give me a call by quoting reference of sound money tips and i will hit u a call back
    regards
    smith

    Jan 04
  • hi friends,

    i have seen your comments, and no doubt in recession of today taking moeny out of pocket is really difficult.
    WELL I CAN HELP YOU OUT BY GIVING YOU GREAT OPTION

    "FREE OF COST"

    SO if u r interested in lowering interest rates on ur credit cards, u can always give me a call on my official number

    i.e.
    001-310-568-6007 ext 4397 (from mondays-fridays)
    10am- 6pm EST

    my name is Smith Johnson


    my name is smith johnson and im representative of account services
    (please do not mis use the line for fun/entertainment.we are helping people as being a not for profit organization.after looking at ur troublesome posts i thought it wud be better to help u out by narrating my contact. so if u r interested do give me a call, and set up for a FREE analysis and Financial suggestions)
    we are targeting people like you who are in the debt of credit cards and facing exorbitant interest rates and balances

    we specialize in reducing ur balances and interest rates to AS LOW AS 4.9%

    AFFILIATION:- we are affiliated with AMERICAN CREDIT COUNSELORS(ACC) AND WE HAVE A SAIISFACTORY REPORT FROM BBB(better business bureau)

    good thing about this program is
    that ur interest rate remains FIX unless the debt is not paid off.

    no security deposit

    permenant reduction in interest rates

    we enable you to pay ur balances in a fraction of time

    payoff in 3-5 years

    reaging of balances allowed from 3-6 months

    also u can tell ur family abt this to help them become debt free 5 TIMES FASTER and to enjoy low and fix interest rates

    Jan 04
  • hi friends,

    i have seen your comments, and no doubt in recession of today taking moeny out of pocket is really difficult.
    WELL I CAN HELP YOU OUT BY GIVING YOU GREAT OPTION

    "FREE OF COST"

    SO if u r interested in lowering interest rates on ur credit cards, u can always give me a call on my official number

    i.e.
    001-310-568-6007 ext 4397 (from mondays-fridays)
    10am- 6pm EST

    my name is Smith Johnson


    my name is smith johnson and im representative of account services
    (please do not mis use the line for fun/entertainment.we are helping people as being a not for profit organization.after looking at ur troublesome posts i thought it wud be better to help u out by narrating my contact. so if u r interested do give me a call, and set up for a FREE analysis and Financial suggestions)
    we are targeting people like you who are in the debt of credit cards and facing exorbitant interest rates and balances

    we specialize in reducing ur balances and interest rates to AS LOW AS 4.9%

    AFFILIATION:- we are affiliated with AMERICAN CREDIT COUNSELORS(ACC) AND WE HAVE A SAIISFACTORY REPORT FROM BBB(better business bureau)

    good thing about this program is
    that ur interest rate remains FIX unless the debt is not paid off.

    no security deposit

    permenant reduction in interest rates

    we enable you to pay ur balances in a fraction of time

    payoff in 3-5 years

    reaging of balances allowed from 3-6 months

    also u can tell ur family abt this to help them become debt free 5 TIMES FASTER and to enjoy low and fix interest rates

    Jan 04
  • I am deep in debt and yes I reealozi it is my own doing.I have come up with an idea and I don't know if it will work.When you pay your accounts on-line they allow you to pay when you want to I am wondering,I were to pay every 10 or once a week would that pay them down faster ? I just don't know if they will try to make me still pay the regular payment on top of these weekly payments.I called one of my accounts this week and they dropped my rate from 19.99 to 17.99,I did tell them I will be looking for another card soon.It really up sets me because I know that these companies that deal with the credit cards can get them to lower these rates plus settle for less money on the balance.I also found out that if you write to your credit card company and tell them you can only pay a certain amount once they cash that check they have entered a new agreement with you and once that happens it opens up a whole new set of rules that the credit card company breaks.It really stinks that the people who want to do the right thing are forced to do other wise.

    Dec 05
  • I am deep in debt and yes I reealozi it is my own doing.I have come up with an idea and I don't know if it will work.When you pay your accounts on-line they allow you to pay when you want to I am wondering,I were to pay every 10 or once a week would that pay them down faster ? I just don't know if they will try to make me still pay the regular payment on top of these weekly payments.I called one of my accounts this week and they dropped my rate from 19.99 to 17.99,I did tell them I will be looking for another card soon.It really up sets me because I know that these companies that deal with the credit cards can get them to lower these rates plus settle for less money on the balance.I also found out that if you write to your credit card company and tell them you can only pay a certain amount once they cash that check they have entered a new agreement with you and once that happens it opens up a whole new set of rules that the credit card company breaks.It really stinks that the people who want to do the right thing are forced to do other wise.

    Dec 05
  • Consolidate all credit cards, pay off as soon as possible, and pay cash from then on. That's my plan!

    Nov 13
  • I also hate Chase Bank I was out of town and made a payment 12 hrs late which put me on to the next day after the due date and they took me from 14% to 28.9 and told me they could not reduce it. I am right now trying to find a card to transfer my balance to. I will not cancel the card and affect my FICO score but I won't be using that card. The won't even begin to negotiate. That's it, take it or leave it well I choose to leave it.

    Oct 08
  • I went on vacation and forgot to make my citicard payment - it was only 4 days late which put my account in default and my interest is now 28.9%. I called cust serv and they said I need to make 12 ontime payments before they will consider lowering. That hurts!

    Oct 06
  • Sep 06 - What happened after the WaMu commotion?

    Sep 29
  • You people sound stupid. Can you not read? Call your credit card company with the intention of moving your debt to another card if they refuse your request to reduce their interest rate. If your credit card company refuses, then move your debt. There are lots of greedy companies out there that are just dieing to have you as a customer. How hard is that to understand?

    Sep 11
  • WASHINGTON MUTUAL CARD SUCKS MY RATE WENT UP TO 28% *** WHEN I CALLED I WAS TOLD BECAUSE I WENT OVER MY CREDIT LIMTI BY 42CENTS THATS RIGHT42CENTS
    EVERYTIME I CALL TO GET A LOWER INTEREST RATE I AM TOLD THAT THEY CAN NOT LOWER MY RATE

    Sep 06
  • wow feb. 21st, you sound bitter...not everyone chooses to go into credit card debt. some lose their jobs, have unforseen medical issues and expenses. please don't be so quick to assume whatever the reason was for your debt is the same for everyone else's. thanks to everyone else for their advice!

    May 28
  • Sorry but the numbers are wrong: I now have a 26% interest rate on the Washington Mutual Card

    May 19
  • I think it is our own fault to have so much debt. That is right and I agree with the person who says it is not the government`s fault. BUT I have a now Washington Mutual 9 then it was Providian). I started with 10% and now they have put me on 16% , even though I never had a late payment or overdraft. Simply because my score went down a little they can do this .I was too innocent and not aware what `` variable APR `` means. I called them twice using the the mentioned tricks and they stay totally stubborn and don`t care at all weather I will switch to another card , or not.
    I think that this is really something the government should control. Because these outrageous high interest rates even you pay on time are ridiculously and put hard working people into more an more debts. And in the end that is also causes a bad economy, or not???

    May 19
  • I have never tried this method, but I did get my interest rate on one of my credit cards through Citibank to a MUCH lower rate -- and here's how I did it. I carried a balance on my card for 2 months, and then I got sick of the fact that my card was so high and (since I ended up getting the cash that next month) I decided I would pay it off in its entirety. However, before I did that I decided to see what kind of interest rate I could get on the balance. I called Citi and asked them for the best rate they could give me, as I would be paying off the balance if my rate was not lowered. They told me they could lower it from the 13.99% it was to 11.99%... but I said "Oh, is that it. Ok, then I'll just pay it off." They immediately placed me on hold and sent me to an interest rate specialist, who subsequently offered me a 4.99% interest rate on any CURRENT balance I had, as well as for purchases for the next 9 months. And after that, my interest rate would go to 5.99%. I'm only 22, have had their credit card for only 3 years, and have never missed a payment -- and, until recently, always paid my balance off in full -- but instead of threatening them that you will close your account, be nice about it. Tell them you just want a lower interest rate because otherwise you have the CASH to pay it off, and you were just wondering what they could do for you. Right now they want your money -- they NEED your money -- so be nice about and see what happens. Good luck!

    Mar 29
  • I recently noticed my Discover was at 18.99% when it was 10.99% before. No idea why it went up as I have EXCELLENT credit score rating. Didn't bother to call cuz the last time I asked for a lower rate, they lowered it from 10.99% to 10%! Gee...thanks! Anyway, I have a balance of $11k so I opened a new card at my credit union with a fixed 5.90% and transfered. This will make it faster for me to pay off the debt anyway. Will keep Discover open so as not to hurt my rating by closing it but will not be using it again. Well...maybe to buy a pack of gum once a year so it can continue to be rated and up my score! Heh, heh...

    Feb 25
  • Called Chase and got no joy on this at all, but then I just managed to pay off all my credit card debt. They blamed it on an APR freeze and the sub prime crap and blah blah. It does not really affect me as I do not carry any balances but I would like the lower rates anyway ...

    Feb 22
  • Why does the government need to help us with this? it's our stupidity that got us in this situation and the credit card companies are only using the advantage that WE gave them. We had the choice of paying on time and keeping our balance low. no one told us to go and buy all the crap that is now putting us in debt and it was YOU that wanted a credit card. The government you want help from never told you to go out and get one. I'm in major debt and i finally realized that it is no one else's fault but ME and finally I'm slowly getting my self out of debt with out having to rely on someone else to help me do something that we are all fully capable of doing. So in short STOP BLAMING OTHER PEOPLE FOR THE PROBLEMS YOU CAUSED. They gave you all the rules to using the card and you didn't follow them now face the those facts and start turning your life around. Trust me it's a great feeling

    Feb 21
  • Ii am in a ton of debt, am 25 years old and am going to finally make a conscious effort to pay off all of my debt by 30. I even put my rent on my American express card a few times. I didn't make the best decisions but am not going to keep adding to my debt anymore. I would pay off a but then put more on it. This is definitely not the way to get ahead. Wish me luck! :)

    Feb 21
  • Never get a Discover Card. I have had mine since 1991 - always a high interest rate. I paid this card off several times, have NEVER been late, and my rate was 22.99% I have tried numerous times to get the rate lower with no success. Finally, they lowered it to 19.99%. That to me a default rate. Their whole system is a pain. I have been trying to get a new card with lower rates, but get turned down because of the high balance transfer request. So if your stuck, your stuck. Never apply for Discover Card!!!!

    Feb 12
  • The credit card companies suck, our so called government has given them the power to rob us blind. If they really want to help all of us they would not allow the banks to do this and charge what they do. But I dont believe they really care about us or the economy all they care about is the rich old men of wall street and the so called global economy so wall street hochos can get bigger pay days. What do you think,do we really matter, all we are to them is the working class that gets penalized for not making enough money and being able to pay our bill at the end of the month. I requested that my intrested rate be lowered once and was told that I didnt make enough money. Hows that.

    Feb 05
  • my mom has a american express with a balance of 21 thousand dollars , shes been paying 500 dollars every month but its not helping at all .. the balance wont go down because the rate is too high i think its like 13% i did call the card but they said no to lowering the rate cause it was 18 before and they made it 13 like 4 months ago. anyways , i tried getting her another card , her credit is really good but she gets denied because of her 20 grand card .... i hope these banks that give these people these insane interest rates fall into pieces .. there are alot of things that they dont tell you and the gov is just robbing its own ppl ..

    Nov 10
  • Does this tip work on unsubsidzed school loan? I ran out of subsidized school loans just before I was about to graduate and I had to take out a 1,500 loan to finish the last semester and I signed with Sallie Mae signature line school loans. Later I found out that my school loan debt consolidation refused to cover this particular school loan. It is considered a school loan because I could get it deferred as I'm going back to school for my master's but they just won't cover it as part of debt consolidation. Apparently, during my last semester and the obligatory 6 months period, the sallie mae loan was 1% or 3% but when it came time to start repaying, they bumped up the interest rate to 18% and my balance is now $3900. I want to pay it off faster but it is getting very hard because of the high interest rate. Would it work by calling them to reduce the interest rate?

    Jan 22
  • [...] Full Article [...]

    Sep 18
  • Can anyone tell me what went wrong? I called Chase Visa. We generally run $4-6,000 per month and pay on time. Once in a while we just pay the minimum and incur finance charges. The rate is 28% I called this morning and the best they offered is 27%! I said I didn't want to cancel, because I had all these bills tied in to automatically bill my credit card, but I also had all these lower 8-9-10% credit card offers sitting in front of me. What did I do wrong? Should I just go thru the hassle of cancelling?

    May 01
  • Back when I stacked up an embarassing amount of credit card debt I did this. I called all of my cards and simply asked for a lower rate. All but one (Citibank) complied. There was some shuffling as I took advantage of introductory low rates but then I focused on paying off the highest rate card. It took time, and we scrimped to put everything we could toward getting out of debt but it worked.

    Jan 16
  • [...] (via soundmoneytips.com) 1) Note what interest rate you are paying on your current card’s balance. 2) Do a little research and find another card that offers 0% balance transfers and no annual fee (here’s a good place to start). Then find out what the interest rate will become after the initial (oftentimes, 6-month) period. 3) Mentally prepare yourself for transfering to the new card. 4) Call your current card’s customer service department and inform them that you’re planning to cancel the card because their interest rate is too high. You’ll probably be transferred at that point to an agent whose whole job it is to convince you otherwise. 5) While talking with this agent, be firm — tell the agent you’re planning to leave, but would consider staying if s/he offers you a drop in the interest rate to under the other card’s rate. Don’t tell them what card it is — they’re armed with reasons why that’s a bad card for you, and that’s not the conversation you want to have with them . Stay focused on the issue of lowering your current rate. 6) If the agent goes for it, great. If not, great too — move to the other card. The first one doesn’t apparently value your business. [...]

    Jan 13
  • I have used his technique several times. It works very well. There are always offers and incentive programs available. An important extension to the technique is to call about every 6 months. The companies are always trying to migrate you to higher interest rates so you have to remain vigilant.

    Jan 12
  • Lowering Your Credit Card Interest Rate

    Getting a lower interest rate on your credit card debts can be a big help in getting them paid off faster. Of course, one way to do this is to switch your balance to a card with a lower interest rate. Unfortunately, doing this too often could have a ...

    Jan 10