5 Tips to Negotiating a Lower Interest Rate on Your Credit Card
That means the typical consumer has dozens of credit card offers a month. Many of them advertise low or no interest rates. But, transferring balances and opening up new cards can be difficult and time-consuming.
Negotiating with your current credit card companies might be a better tactic. Fortunately, many card issuers are willing to lower interest rates, but you have to know how to ask. Try these tips.
Tips to a Lower Interest Rate
- Call from a quiet location. If you have a lot of background noise and distractions, you won’t be able to give the service representative your full attention, and they won’t be able to hear what you have to say.
2. Call only when you’re ready to talk. We’ve all opened a credit card bill and panicked when we saw that our rate had jumped, but no one wants to negotiate with someone who is yelling or crying. Be calm and polite when you negotiate.
3. Be nice. Seriously. Tell the customer service representative that you’re glad to talk with her. Emphasize how much you like your current credit card company, and that you would really hate to have to switch cards because everyone on the phone just seems so nice.
4. Be ready to walk. If they can’t work with you, have another credit card offer in hand that you can transfer the balance to. Make sure you (nicely) explain to the operator that you’ll just switch to the other company instead. Most operators can see if other banks have checked your credit and if they’ve pre-approved you for a new card.
5. Don’t expect the rate to drop to zero. Most of the time the company will be able to lower you about one to five percentage points. Remember this rate will be permanent, while the other offer is a temporary rate that will jump.