Some Advice on How You Might Negotiate Lower Credit Card Interest Rates

October 22nd, 2010 | Posted in Debt Relief

Most credit card companies generate an average of billions daily for the interest fees they collect from you. Thankfully, the stiff competition between banks and financial institutions have given the consumers the opportunity to apply for lower interest rates. It is because of this that you, as a cardholder, should take advantage of this privilege and use it to your benefit. You can improve your business if you learn to take advantage of the finance opportunities provided to you by financial institutions.

Use this knowledge wisely and try to negotiate for a better offer. And by better, it means you should definitely ask your credit card customer service if they have any offers of lower interest rates on your debts. The best way to start is by calling your customer service hotline and ask the lowest rate they can offer you at this time. Try to read further so you will know just how you can do this.

Before calling your customer service hotline to ask for lower credit card interest rates, try to check out your payment history to gauge your standing with the company. Regular and up-to-date payment with the at least more than the minimum of the required deposit, would certainly make a difference in their available offers. If you show that you are a trusted a loyal consumer, chances are they would offer you a much lower rate than what you currently have with them.

Don’t get easily swayed by introductory offers. What you want are the best and the lowest possible fixed rate that the company can give you.

Try to also check out the prime rate all over the country before you make that call. This is important because you can use this as a benchmark for your negotiations with the bank. You might encounter some companies who would refuse to make such a low offer, but at least they know that you are an educated consumer and that you have at least a benchmark where to go next in your negotiation.

Attacking your customer service agent is never the solution to you high interest rate problems. Speak with a mild voice that still commands respect and assurance that you know what your rights are. Be eloquent when you are explaining your side to the agent handling your concern. You are not talking to a robot or a machine, but instead to a human being who could empathize with you.

If you feel like you are going on circles with your negotiation, change your strategy and do not blow off some steam. Do not threaten to shut your card down and transfer to another company without exactly having another offer from another bank. When you do transfer, make sure that you have properly closed your card and paid off the balance remaining.

Just remember that you do have the power to save yourself from a lot of mounting debt by negotiating your interest rates. You’ll be amazed at how much you can save in the process.