How to Lower Your Credit Card Interest Rate

by
Emily Blain
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Do you know the interest rates on your credit cards?

Don't worry, you're not alone, most of us hardly ever check how much we're paying. But the good news is, that if you try you can always get a better deal. Either by transferring your balances to another card, or even asking your credit card company for a better deal.

This can seem intimidating, but consider this - if you don't ask, you won't get, and what's the worse that can happen? It's not like they'll increase your rates! 😆

Ok, let’s begin!

Asking someone, anyone, especially a company or organization can seem daunting at first. You might think, of course, you’re the little person, and they’re the big company, and you’re asking for a change, a favor from them.

But, here’s the secret, everything is negotiable! Everything, literally everything, try it sometimes, ask your local supermarket if they’ll give you a discount at checkout, it’s fun! And you’ll be surprised by how many will say yes!

As you read this guide below, remember, you’re not alone, and you can reach out to your coach anytime for some guidance or even if you want to practice with them before you call your credit card companies. They’d love to help you!

Let’s go! 🚀

Preparation

🧘‍♀️ Breathe: Take three deep breaths. Relax, it’s ok to be nervous!

🧐 Research: Do some research to see what rates credit competitors are offering, also notice that your current creditor might also have other cards with lower rates - https://www.nerdwallet.com/compare/credit-cards

🚫 Be Aware: There is a chance they will ask to do a credit check - Be sure to confirm with them if it is a SOFT Hit or a HARD Hit and what impact that will have on your credit score.

⏳ Know Your History: Know your credit score and history and payments for each card. Have this information handy.

🦸 Practice with Your Money Coach: Know your credit score and history and payments for each card. Have this information handy.

Tips for Negotiating Credit Card Rates

It can be scary to call the companies, we get it... but feel the fear and do it anyways! This could literally save you thousands of dollars and cut years off of paying back your debt.

Don’t forget before you call that you are their best customer! They should love you and want you to stick around, it is their best bet of getting paid!

1. Decide what companies you want to call: Make a list of your credit cards and rates. Prioritize which ones you want to call in what order. (Start with highest interest or highest balances)

2. Call the Customer Retention Department and Introduce Yourself: Explain who you are, how long you have been a client and why you’re calling them.

3. Be reasonable & calm. Let the representative know that you have found other offers from multiple companies for a much lower interest rate but you don’t want to have to move your balance and go through the hassle.

** If this is your last resort: Let the rep know that you are debating cancelling your card and looking into debt settlement but would rather negotiate a lower rate. Rather than the card going into bankruptcy and a debt settlement, it is in their best interest to give you something more manageable.

4. If they say no… Ask to speak to their supervisor or service manager. Explain your case patiently and calmly. Sometimes the first person you talk to has their own script to follow and doesn’t have the power to make the changes that you’re asking for.

5. Ask About Other Options: If they don’t agree to reduce your interest, ask them if they can do anything for you at all, or if there are other programs or payment plans you could use.

  • Ask if they have any other options for you or any other ideas?
  • Do they have balance transfer options?

6. Bring Your Most Charming Self: Always be kind, polite, and keep your calm!

7. Don’t Worry About Them Saying No!: We are repeating this one because we all fear rejection. The good news is that if they say no, you’re no worse off than you were before... so literally nothing changed!

8. Come Up With Plan B With Your Money Coach: If things don't go your way, that's fine, time to regroup with your money coach, and come up with Plan B!

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