Lower your credit card interest rate with a phone call

High credit card interest rates can make it difficult to pay down debt. Fortunately, unlike fixed rate loans, credit card interest rates are usually negotiable. Most credit card companies will be willing to work with you rather than lose you as a customer, and in many cases, you can get a lower interest rate just by spending a little time on the phone.

Here is expert advice that may prove helpful when considering the rates of interest you pay on your credit cards.


Do

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  • collect your good points
  • collect offers from other companies
  • set your expectations
  • keep your request simple
  • have a plan B
Don't

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  • be unprepared
  • give up easily
  • lie
  • get emotional
  • make hasty decisions

[publishpress_authors_data]'s recommendation to ExpertBeacon readers: Do

Do collect your good points

Before you call your creditor to negotiate an interest rate, consider your strong points. If you’ve been a long-time customer, make your payments on time, and have a good credit score. These are all points that make you a valuable customer for your creditors, and may help to negotiate a better rate.

Do collect offers from other companies

If you are getting better offers from competing credit card companies, you can go ahead and say so—there’s no shame in using this as a bargaining tactic. You may tell your credit card company you’re getting offers with better interest rates, terms, or other benefits and see what they can come back with to make themselves more attractive to you. Chances are you get credit card offers in the mail from time to time—keep a few in front of you as a reference when you’re ready to call.

Do set your expectations

Before you call, know the interest rate you’re seeking and what you’re willing to accept. It’s important to be realistic; depending on the current rates, asking for a double digit reduction may not be feasible. Having a target rate ahead of time will help you decide if you’re willing to accept the rate you are offered during the call.

Do keep your request simple

Now you’ve done your homework, and you’re ready to call. Be prepared for the call: you may be shuffled around a few times until you’re connected with the right person. Once you’re there, there’s no reason to dive into hard negotiating tactics immediately. Instead, just say that you are looking to reduce your rate, state your positives as a customer, and mention that you are getting better offers from other companies. Any skilled customer service rep should be able to take things from there. If you aren’t satisfied with the results, ask to speak to a supervisor, and restate your case after the transfer.

Do have a plan B

If your creditor isn’t willing to budge, or wasn’t able to meet your requirements, there’s nothing wrong with packing up ship and sailing on to better waters. Find a company that will offer something closer to the rate you want. Just make sure you’re really ready to move on and open a new card before you do so. Keep in mind that if you have subpar credit, or are currently engaged in repairing your credit, you may want to execute your Plan B after your credit has improved.


[publishpress_authors_data]'s professional advice to ExpertBeacon readers: Don't

Do not be unprepared

Before you call up your creditor, you need to do your research. Credit card companies aren’t proactively looking for ways to save you money—they need to be convinced. Make sure you’ve done your due diligence, identified a realistic credit rate offered by competing card companies, and know your credit score.

Do not give up easily

Credit card companies don’t want to save you money, but they may do so rather than risk losing you as a customer. You should be polite, but firm. If a customer service rep cannot complete your request, ask to speak to a supervisor. If you still don’t get what you want, let a few days go by, and try again. You might get another rep or supervisor who may be able to help.

Do not lie

If you have had trouble making your credit card payments, or don’t have the best credit score, you still need to be honest. Most of the information credit card companies use to determine interest rates is easily verifiable, and being dishonest will hurt your chances of reducing your rate.

Do not get emotional

Dealing with customer service help lines can be frustrating on a good day, but getting angry or emotional over the phone won’t do you any favors. Make sure you are prepared for your call, and know what you are going to say. If you are feeling frustrated while on the phone, take a sip of water or take a few deep breaths to calm down before you continue.

Do not make hasty decisions

If you didn’t get the right interest rate, it might be time to move on and consider other credit card options. However the inquiry associated with opening a new credit card can ding your credit score, and if you’re having trouble with your credit, or applying for a home or car loan, now may not be the right time to jump into another credit card. Make sure it’s the right time before you start opening any more credit cards.


Summary

When attempting to renegotiate your interest rates, it is important to be prepared before you pick up the phone. Make sure you’ve done your research and that you’re ready with any necessary information. Keep your requests simple, and be persistent if you don’t immediately meet your goal. It’s important to remain honest, firm, and calm on the phone. If you don’t get what you want, don’t rush into any hasty decisions. Just make sure you have a backup plan for that scenario. Luckily, there is a lot of consumer choice when it comes to credit cards.

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