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Lowering Credit Card Rates

Due to competitive forces and the free market economy it is actually quite easy to take steps in lowering credit card rates. Not only do credit card companies issue consumer credit directly on the open market but most if not all banks and credit unions also offer their own credit cards. This results in hundreds of available credit cards which compete against each other for a limited consumer pool. However, sometimes the best way to obtain a lower credit card interest rate is to speak with your current credit card issuer.

As with most things in life, sometimes it is best just to ask for what you want. Look at the number on the back of your credit card or credit card statement and use it to call customer service. The key is to be friendly and polite, state exactly what you want and why you think you should get it. If you are a consumer who uses your credit card often and pays monthly interest then it is in a credit card issuers best interest to retain your business because they are currently making money off of your balance. If you frame your request in this light more often than not you will receive a lower interest rate on your credit card. However, the opposite also holds true. If you are a credit card user who pays their balance in full each month to be quite honest you're costing the credit card company money. It is not unheard of for credit card companies to view these type of financially sound consumers as unprofitable and therefore may not lower your credit card interest rate. Fortunately you still have options available to you.

Competition compels many financial institutions to offer balance transfers often waving balance transfer fees and offering introductory 0% annual percentage rates for between 6 and 12 months. Use national publications and reputable websites to get a list of the best credit card offers currently available around the nation. When you have this list go online or call their 800 numbers and request a balance transfer from your current credit card double checking if there are any transfer fees or promotional interest rates. The only drawback to this scenario is that your FICO score is partially based on the length of time you have an open credit account as well is it's available credit so by closing an existing account and opening a new one it could adversely affect your credit score.

If you don't want to go the balance transfer route it is still possible to work with your current issuer by speaking with customer service a few weeks later and asking to be transferred to customer retention or management. These upper-level departments will often work with consumers and provide incentives to maintain accounts which may not be available to front-line current customer service representatives. It is fairly common for most credit card issuers to employ hundreds of customer service representatives and sometimes the only thing that is required for lowering credit card interest rates is to call back on another day and speak with different employee.

Lowering credit card interest rates is an easy process and can often be completed with a single phone call. In today's competitive marketplace there really is no reason why a consumer should be paying a high interest rate if they have good credit and are willing to shop around. Credit card interest rates are more of a guideline than a hard and fast rule and therefore open to interpretation by whomever you're speaking with whether that be a manager or retention specialist. High credit card interest rates can be an unnecessary financial burden placed on consumers and it is in every consumers best interest to lower their credit card rate as soon as possible.