Lowering Your Credit Card Interest Rate | Garden State Home Loans | NJ Skip to content
Feb 02
, Lowering Your Credit Card Interest Rate

Lowering Your Credit Card Interest Rate

Credit Card Interest Rate

Is your interest rate not where you want it? Here’s how to lower the interest rate on your credit card.

  1. Evaluate your situation

Before you call your credit card company, you should understand your current situation. Take a look at your current credit terms, including your grace period, statement due date, and current balance. You should also check your credit as well. Having a good credit history gives you more leverage to negotiate. Being prepared helps you to better evaluate the options your credit card company may offer you.

  1. Build credit

If necessary, you may want to build your credit so you look more creditworthy to your card company. When doing this, try to keep your credit utilization rate, or the percentage of your credit limit you’re using, 30% or under.

  1. Find competing offers

As with any business, credit card companies and banks need to compete with others to acquire more business. This means they need to stay competitive with rates. If you find a similar card to yours with a different company and better rates, take note of it. Be sure to mention the card’s name, company, and terms when you reach out to your company. Subtle or not-so-subtle threats to open a credit card with a new company can work well for your negotiating power.

  1. Call and make the request

Now it’s time to call the credit card company. Before calling, have a rate in mind. Do your research to determine what kinds of rates a person with your credit score can qualify for. When asking for a rate cut, persistence is key. Keep in mind you may not get a yes from the first person you speak with or you may not get the rate you were looking for. In either of these cases, you can ask to speak with a supervisor. You may want to hang up and try again. Some things that companies will consider when deciding whether to approve a rate decrease are:

  • How long you have owned the card
  • The card limit
  • How much you owe on the card
  • How much you own on all cards
  • How many times you’ve paid late

  1. Don’t be afraid to ask again

If you didn’t get a rate decrease after your first call, don’t give up. Keep making consistent payments on your card for at least six months. Companies are more willing to offer lower rates when they see you have been able to consistently pay your debts.