Negotiating a Lower Interest Rate for the Credit Card

Though you may not be able to negotiate much in life, there are many ways that you can indeed reduce the amount of interest that is being charged to you as the consumer, for the balance on the credit card. Negotiating with the creditor, the credit card company, can be an effective way for the consumer to get a lower interest rate for their credit card and pay the debt quicker by ensuring that more of the monthly payments are going towards the principal, rather than the interest that is being charged on the debt.

How can the customer negotiate a lower rate for the credit card? Customers can contact the credit card company through the customer service phone number, asking to speak with a supervisor about the prospect of reducing the credit card interest rate. The customer service representative will use specific factors to determine if the customer is eligible to reduce the credit card interest rate.

What types of factors are considered when the customer contacts the credit card company to reduce the debt? The credit card company takes into account the current credit score of the customer applying for the lowered interest rate. Customers with a high credit score are eligible for top tier interest rates, which are lower than those interest rates offered to customers that have a lower credit score. In addition to the credit score, the credit card company is going to take into account the history with the credit card company. Using a specific formula, the credit card company will determine the worth of the customer including the payments made, balance maintained and even whether there are late or missed payments that factor into the equation. Using this information, the credit card company will determine whether the customer is eligible for a lowered interest rate for the credit card debt.

Customers searching for lower interest rates for the credit card are often granted short term breaks in the interest. Customers that are going through financial hardship can contact the credit card company to inform the company of the tough times and often the credit card company will give the customer an interest free period of up to three months to allow the customer to get back on their feet financially, before additional payments of interest are required.

Using these tips, customers can contact the credit card company to determine their needs for the lowered interest and the credit card company can consider the history to determine if the lower interest rate can be granted to the customer.