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Asking for a Lower Interest Rate


As you are probably aware, credit card interest rates can be quite high with rates upwards of 30% annually. This staggering rate can make it nearly impossible to pay off your debt if you can only afford to pay close to the minimum each month. One way to get out of debt even faster is to reduce your current interest rates.

Ask and You May Receive

It may only take one phone call and a few minutes of your time to save hundreds, if not thousands of dollars during the life of your debt balance. Credit card companies are often willing to reduce your rate if you simply ask. While it won’t always work; it doesn’t hurt to try.

Factors That Will Improve Your Chances
  • You have not recently requested a change in interest rates for that particular card.
  • Your account is in good standing with a history of regular on-time payments.
  • You pay more than the minimum each month.
  • You have a good credit score.

If They Say No

Don’t worry if they say no to a rate reduction at first. If they are not willing to reduce it, you can inform them that you will be doing a balance transfer to another card with a lower rate. They want your business, so if you mention that you could be moving the money you may have more success.

If they still say "no", it isn’t the end of the road and you may still have luck with them in the future. Keep up with your payments for another three to six months and try again. It doesn’t hurt to ask, but you won’t know unless you try.

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