How to Negotiate a Lower Interest Rate on Your Credit Cards. Today we are going to be taking a look at credit cards and high-interest rates. So many people are not comfortable with the current credit card they have because the interest rate is so high.
Your current credit card might have a higher interest rate than the previous one, but you are in luck today. This is because we are going to be looking at How to Negotiate a Lower Interest Rate on Your Credit Cards.
How to Negotiate a Lower Interest Rate on Your Credit Cards
Are you having a high-rate interest credit card and you are simply looking for options to change to? Just hold on a second and go through this article because, in the end, you might not need a new credit card. This is because after reading this article you will know how to negotiate interest rates for your credit card.
Can I negotiate a Lower Interest Rate for my Credit Card?
Now before we go ahead and start talking about the processes you will take in negotiating a lower interest rate on your credit card. Let us, first of all, take a brief moment to answer the question if it is possible to negotiate a lower interest rate. Let’s also ask ourselves if it has been done before and if it is still possible to do now.
The answer is YES it is very much possible to negotiate a lower interest rate for your credit card if it is possible. All you need to do is to get the right knowledge of everything you will need in order to negotiate a lower interest rate. The good news is that you are on this article and that is exactly what we are going to be discussing in a moment.
What Is a Good Interest Rate on a Credit Card?
In negotiating your credit card interest rate the most important thing is your credit score. Your credit score is the determining factor in whether you will have a high-interest rate or a low interest rate with your credit cards. The higher your credit score the lower your interest rates and the more opportunity for you to get a loan. It also helps to increase your credit card application chances.
Inversely this means that the lower your credit score the higher your credit card interest rate and the more difficult it is for you to get a credit card and a loan. Now when applying for a credit card your credit score determines the type of credit card you will get. And like as I have just mentioned it also determines the interest rates on your credit card.
That being said the best way to determine if the interest rate on your credit card is reasonable is to compare it to the average interest rate on a credit card account. The average interest rate on every credit card is 16.88% as of November 2019. Therefore when negotiating your credit card interest rate negotiate a value lower than the average, which is what is considered a reasonable interest rate.
How to Negotiate a Lower Interest Rate on Your Credit Cards
One of the most important things that will give you rest of mind and make you enjoy your credit card is when you have a low interest rate. Also if you have a balance on your credit card having a low interest rate will help you a lot. But the question now is how do you negotiate a lower interest rate on your credit card?
The only way to do so is to negotiate a lower interest rate by following the steps I have listed below:
Evaluate your current situation
The first step in negotiating a lower interest rate on your credit card is simply by evaluating your current situation. You need to get an idea of your credit card situation and what you are working with before calling the company to negotiate a new rate. Some things you need to know are your current credit card terms, you also need to know the grace period, the statement due date, and your current credit card balance.
What this basically means is that you need to know exactly what you have on your credit card and everything before picking up the phone to call the company. Getting the above information will tell you if you have a strong credit card which will help your negotiations for a lower interest rate. Which will help convince the company that giving you a lower interest rate is in their best interest.
Have a strong credit card
Alongside knowing your credit card information you need to have a very strong credit card history with the credit card you are seeking to negotiate a lower rate for. If your credit card history is less than optimal then we need to work on it to make it strong before making your request. This is because the credit card company might not listen to you should you have a poor or bad credit card history.
Find competing credit card offers
One of the most prominent methods in negotiating credit card interest is simply involving a rival credit card company. Look for other credit card offers that are lower than yours and note them down this will come in handy when negotiating with your credit card company. This is by simply pointing their attention to these other credit card offers that are lower than theirs.
Call your credit card company
Now is the time of action using all the information that you have gathered get in touch with the company support and request a reduction. Make sure you properly draw their attention to how strong your credit card is and also tell them about other offers from companies. Also, call them to explain the reason you want your credit card interest rate to be low.
When it is all said and done if you have provided a good argument and backed it up with all the evidence you might just get your credit card interest rate reduced. One thing you need to know is that the company might likely say no. It is all part of the process, the steps are not yet finished. Keep reading for the two last ones.
Request for a temporary reduction
Even if your credit card company says no there are still other options you can try. One of the other options you can try is a simple negotiation of a lower interest rate for a temporary period. If they refused to give you a permanent reduction simple ask for a temporary one. You can ask them to give you a one-year rate reduction of 1 to 3 percentage points. After showing them your strong credit card history they might be inclined to do so.
The last but not the least procedure on our list today is to try again. If you have tried once and received a no learn from your mistake and try again after some time. Make sure that before trying again you build your credit card to make it stronger so that the company will know they are dealing with a trustworthy person.
There is no straightforward process for negotiating a lower interest rate on credit cards. It all boils down to how well you make your argument and your credit card history. If you have these two things together you can try again and again. keep on trying because you are eventually going to get your interest rate reduced sooner or later.