The huge interest rate on credit card debt is a crushing blow to financial freedom. At the bottom of the spectrum, just 15% on a $ 1,000 balance is bad enough, but higher numbers can make this amount seem insurmountable. Can you request a lower interest rate on credit cards?
How to negotiate a lower interest rate on credit cards
Before contacting the card issuer, it is important to arm yourself with your account information, credit history and even competitive offers.
Write down key points and even the script and remember to have a pen and paper to take notes from the conversation.
Doing so will make it easier for you and the person you are talking to. It’s also the best way to get a positive result.
Strengthen your credit
Like lenders when buying a home or car, credit card companies want to do business with clients on a solid financial basis. Strengthening your credit will reduce your credit card issuer’s risk, making them more likely to lower your rate. Therefore, before making contact, pull out your creditworthiness to see where your financial condition stands.
If your credit is growing, this is an excellent bargaining system, so sell this point by calling the card issuer. However, if your credit rating needs repair, you can delay the connection until the numbers are more stable. Check where you can get quick winnings. Pay off a smaller balance or pay off a large part of a larger debt. Both will increase your credit standing.
Review your current situation
Before you call the customer service number on the back of your credit card, find out what you are working with. Get to know your current credit card terms, including grace period, payment deadline and current balance.
As you prepare, you prepare for a better assessment of the options that your credit card can offer.
Don’t forget to check your credit. You can use this as a lever in negotiations. Having a strong loan can mean that you are likely to pay off your balance and what you owe, so credit card issuers may be more likely to meet your demands.
Find competitive card offers
Tell your credit card company that you can get a lower rate from someone else. They don’t want to lose your business if you’re a good customer. You need actual offers to give it a leverage effect. One of the places where you can start looking is your mailbox. If you use credit cards, you should receive competitive online and snail mail offers.
Remember that balance is usually a valuable resource for a credit card company. Without customers, the company loses the opportunity to obtain a very attractive rate of return. By expressing, in a non-confrontational, but direct way, that you want the company’s help to keep you as a customer, there is a good chance that it will meet your demand and lower the rate. Since there is nothing to lose but a little time, anyone with a large credit card balance should try these techniques.