How to Lower Credit Card Interest

Posted on June 9th, 2009 by Paul

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With lower credit card interest rates, you stand to save much cash off your monthly charges. Such a thought may seem like a flight-of-fancy, especially if your stuck with rates that are killing your monthly budget. In truth, you can indeed lower your credit card interest, provided you are cold and cunning, as you deal with your credit card company. Research on the rates of the company’s rivals can also help your cause.

A Good Credit Standing is Your Backup

In any business, a customer who pays his or her dues on time is valued by the company. Credit card companies protect their customers with good credit standing, which gives you a fighting chance to lower your interest as long as you belong to that category. Settle your dues then secure all the documents that prove loyalty and creditworthiness, starting with your credit history. Compute your ideal rate, which should be much lower than what you have yet fair to the company as well.

Know the Rates, Benefits, and Offers of Other Companies

Credit card companies are perpetually engaged in stiff competition, so you’ll surely find more than a few good offers. Check the internet for the offerings of your credit card company’s rivals. Print all the information you can gather. They are your bargaining chips, when you call your credit card company.

Let the Bargaining Begin

With all the dues settled and necessary documents close by, your next recourse is to bargain with the credit card company. The process is easy. You should just keep your cool when talking to the agent and the manager.

Procedure:

Call the customer service hotline of your credit card company.
Tell the representative that you’re requesting for your credit card interest to be lowered. Expectedly, he or she will state company policies that prohibit the lowering credit card interest.
Make your inquiry valid by stating that you have been a loyal and creditworthy customer. Back up your claim with facts, using the documents you previously collected. For instance, you can say something like, “According to my credit history, I have been consistently paying my dues for the past 5 years and…”
You’ll be put on hold, since the agent will consult his or her supervisors. Such a request is often beyond the power of customer service reps.
When the rep returns, repeat your request to have your interest lowered, this time back it up with the offers of other companies. Check the information you collected previously.
If the rep says no, threaten to transfer to a rival company.
If the rep still says no, ask him or her why the rates can’t be lowered and if you could talk to a manager.
Just repeat what you did in steps 2, 3, 5, and 6.

Usually, when a loyal customer makes the threat to transfer, the company gives in with the request. You can also repeat the entire procedure the following day, if your request is denied. Remember, there is always more than one manager present each day. Chance up on a kindhearted one and your request will probably be granted.