Lowering your credit card interest rates could save you hundreds, if not thousands of dollars. The lower your interest rates, the more money you save. Call your credit card company and request a lower rate. Many consumers are intimidated by the thought of requesting a lower rate. Don't be one of those consumers. You'd be surprised at the results. Your chances are good if you have been a customer for some time, you are not at your credit limit and you have been making timely payments. Any extra money you can save by lowering your credit card interest rates may certainly be put towards the rising costs of gasoline.
(1) Review Your Credit Card Statements
Review all of your credit card statements. Note the annual percentage rate you are paying on all of your credit cards. You should also note any late, over-limit or any other extra fees. Many credit card issuers practice universal default which means they can raise your rates if you fail to pay another bill on time, even a utility bill. You may not even be aware if you have been a victim of universal default because the credit card company does not have to warn you. In this case, you really do need to negotiate a lower interest rate.
(2) Research the Competition
Do a little research to find out what other credit cards have lower interest rates. You should also look for cards which offer 0% balance transfers and no annual fee. Be sure to note what the interest rate will be after the initial period. It is not uncommon for various credit cards to have vastly different interest rates. Some banks issue several different credit cards and there can be great interest rate and fee disparities within those cards. You could be paying twice the interest as someone else for the same credit card. Rates constantly fluctuate so it's imperative you check all of your monthly statements.
(3) Contact Your Credit Card Issuer
Speak with a representative and request your credit card interest rate be lowered. Always stay calm, professional and polite. You should always mention that you have been a good customer and that you would like nothing else but to continue your relationship with them. Point out the fact you pay on time. You may also want to mention you have a zero percent or other low interest card offer that you can transfer your balance to. If they agree to lower your interest rate you don't have to stop requesting. Call again in a few months and request an even lower rate. Getting your credit card interest rate lowered is not a one time deal. As long as you are a good customer you can periodically request lower interest rates.
(4) Be Persistent
Sometimes the first person you speak with will tell you they are not authorized to lower credit card interest rates. Don't give up. Request to speak with a manager if this occurs. Someone in that company can lower your interest rate. Remember to be polite when asking to speak with upper management. At this point if you cannot negotiate a lower rate ask the reasons for the denial and inquire as to when you may call again to request a lower rate. Even if you threaten to close your account, do not close your account. Remember that length of credit history is 15% of your credit score so you do not want to close any old accounts.
Call back every few weeks if you are denied. Being persistent increases your chances of getting your rate lowered. Your persistence lets your credit card company know you are serious.
(5) Pay-Off Credit Card Debt
Another alternative to a denial of your request would be to pay off that debt. Take any extra cash and apply it to that debt. Every extra dollar you put towards your credit card balance means you pay less in interest rates over time. For example, making a minimum payment of $50.00 a month on a credit card balance of $2,500 at 19.9% interest rate will take approximately 9 years to pay the entire balance. If you double that payment to $100.00 a month on that same balance and interest rate it will take only 2.5 years to pay off that balance.
According to the Massachusetts Public Interest Research Group (MASSPIRG), more than half of consumers who called their credit card company to complain about their high annual interest rates were successful in reducing those rates by an average of one-third. Your chances of getting a lower rate are good. It never hurts to try. For additional information on reducing debt please visit: Eliminate Debt
By Lisa Phillips
Lisa Phillips is a marketing consultant specializing in business expansion and development. Because many small business owners lack the personal and business credit necessary to grow and expand, she has developed a free website to aid consumers as well as entrepreneurs in rebuilding and taking control of their credit.
http://www.rebuildcreditscores.com
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