Credit card companies all across the country are taking an aggressive approach with raising the interest rate on credit cards. It doesn’t even seem to matter that a cardholder has been responsible with his borrowing habits or that he has been a long time customer. The only point that lenders seem to be interested in is the simple one that right now they have the power to raise your interest rates and there isn’t anything you can do about it. Or is there?
Are You in a Good Position to Have Your Interest Rate Lowered?
While there might be hope for everyone that a lower credit card interest rate is possible, not everyone will be in a position to obtain one. Those individuals and businesses with good credit histories and scores are in the best position to lower their interest rates on their accounts.
Credit card holders who have consistently made late payments and in some cases even one late payment are in a bad position to ask for a favor such as the lowering of their credit card interest rate. Plus, those credit card holders who have failed to make payments, overused their account, or exhibited other negative borrowing habits are less likely to obtain a reduction in their interest rates.
How to Get a Credit Card Company to Lower Your Interest Rates
Obviously the lender is not going to lower your interest rates on a whim. You have to call them up and ask for the reduction. Locate the toll free number on your billing statement and make the call. It does not cost you any money to call. It does not affect your credit rating. Plus, it does not hurt. All it takes is a few moments of your time. You need to realize that unless your voice is heard, no one is going to know that you want your interest rates lowered. Make the call and see what happens.
Why Do Credit Card Companies Lower Interest Rates for Those Who Ask?
Competition exists among lenders. They all want new customers. Plus, all of them want to keep their existing customers. Gaining new customers often involves a lot of advertising, marketing, and enticing. All of these strategies cost money. Sometimes it is less expensive and easier to simply lower the interest rates rather than risk losing an existing customer.
How Should You Ask for a Lower Interest Rate?
It is important to be direct and persistent with your request for a lower interest rate. If you have a specific number in mind, then ask for that. Most likely, the company will counter your request with one that is higher. Alternatively, you can simply ask if they can lower the rate significantly.
If the company states that they cannot do so at this time, be persistent. Ask if there is anything they can do to lower the interest rather than have you close your account. At this point, if they still refuse to lower the interest rate, you have three options. The first one is to ask for a supervisor since they often have more discretionary power. The second option is to state that you need to consider what your next step is going to be. The third option is to close the account if you can afford to do so. Remember that your credit card account must be paid in full before you can actually close it.
