How To Negotiate A Lower APR On A Credit Card

Are you overwhelmed with excessive credit card debt? Are you having a hard time making monthly payments? Do you feel like high interest rates on your credit cards are holding you back? It is almost impossible to payoff large amounts of credit card debt with a high Annual Percentage Rate. Many credit card companies are willing to negotiate lower APR's for cardholders but only under certain conditions. If you go in prepared and have a game plan you should be successful in negotiating a lower APR on a credit card.

Just like preparing for the big game on Sunday, you have to have all your I's dotted and T's crossed or you're not going to get what you want. First you have to understand who gets low interest rates on credit cards and for what reasons. Credit card APR's are direct result of risk assumed by the credit card issuer. Individuals with poor credit will receive higher interest rates on average than individuals with great credit. If you have black marks on your credit history or have missed recent credit card payments in all likelihood there is no way you will be able to negotiate a lower APR on a credit card. This is because high risk individuals with poor credit are more likely to default leading to bankruptcy, charge-offs and legal judgments.

So what is your credit like in relation to everyone else? Get a copy of your credit report for free at any one of the three major credit reporting bureaus. Federal law requires Equifax, TransUnion and Experian to provide one free credit report for per consumer every 12 months. Once you have copy of your credit report examine it closely to check for inaccuracies so you can correct them immediately. Black marks may be used as justification for charging a higher interest rate on a credit card. If you have missed payments on one or more credit cards focus on making payments on time going forward.

If however you have excellent credit then it is just a matter of calling up the credit card issuer and requesting a lower APR. Credit card companies are in fierce competition with other issuers for a limited pool of consumers. As an incentive to attract customers many will offer free balance transfers with 0% interest for up to 18 months. Keep this in mind when negotiating a lower APR and mention it to customer service as a possible alternative. If you have been a good credit card holder with good credit and has made payments on time for the minimum amount that makes you a valuable customer. That is because they make credit card interest off of your outstanding balance which can equal hundreds of dollars per year.

If front line customer service is unable to fulfill your request then ask to speak with a retention specialist to see if they have the authority to lower your APR. Be sure to clearly state your case as to why you think you deserve a lower interest rate on your credit card and back it up by referencing your payment history and how much interest you've paid. Paying customers are valuable customers and most credit card issuers will work with cardholders to some extent to maintain that business relationship.