How To Bargin For Lower Credit Card Rates

Interest on credit cards is the lifeblood of the credit card industry. While it might seem they are unwilling to lower the interest rate on your credit card you might be surprised what they are willing to do to keep your business. Just like anything else in life, it doesn't hurt to ask and getting a lower rate can be as simple as calling them up and stating your case.

Credit card companies are always competing with each other for new customers and will use 0% loans for 12 months, free balance transfers, another specials and incentives to entice new customers. If you have an existing credit card and would like to stay with that company but want a lower rate then call their customer service number and explain why you deserve a lower interest rate. The key is not to go into any negotiation unarmed.

When on the phone with a customer service representative ask explicitly if there is anything they can do to lower your existing interest rate. Sometimes it's just as simple as that. You get your new rate and you hang up the phone. But that's not always the case and if you can state that you have an excellent credit history, made all payments on time, never been over your credit limit and carry a large balance, they might be more likely to work with you.

Credit card companies are smart however and they are able to determine very quickly whether or not they are worried about losing you as a customer. If you are the type of credit card holder who always pays the balance in full every month, never uses credit card checks and essentially doesn't make any money for them then there is a high likelihood they will not be interested in keeping you as a customer. The key to negotiating a lower interest rate on your credit card is to keep all options on the table and not give up too early. At this point it might be necessary to speak to a supervisor.

Speaking with a supervisor or account manager might have better results strictly because they have more options available and might have information first line representatives are not privy to. After stating your case again you will either gets a lower rate or come up empty handed. But all still is not lost.

All it takes is for the credit card company or bank to have a bad fiscal quarter and all of a sudden they could be singing a different tune when it comes to lowering credit card rates. Keep in mind they won't be proactive and lower your rate out of the kindness of their heart as that tends to cost them money but a few months later you could find them more receptive to your request.

At the end of the day it really doesn't matter if they lower your interest rate are not. There are hundreds if not thousands of credit card issuing companies in existence and more often than not you can get better terms with a better rate by taking your business elsewhere. Vote with your pocketbook and don't get too attached to any financial institution and you will always come out ahead.