Interest rates are among the many reasons why a credit card can
get so expensive. Once you forget to make a payment in a timely manner, your
account could get penalized with interest. As a result, you may have to pay
more than what you actually borrowed. The only way to escape the high interest rates
is through paying all your balances on time – not just the minimum payment but
all your balances.
If you cannot pay your balances in full, you can pay only the
interest rate that your account has accumulated. Card companies have the right
to increase the rates. Though they will inform you of the increase, this could only
be burdensome to your financial health. Thankfully, there are ways to lower
your APRs.
Below are some ways on how to convince credit card companies to
lower your interest rare:
Find out how much you can pay off each month.
There are online and downloadable tools that you can use to
determine the exact amount that you can afford to pay every month. The
important part here is to make sure that you make more than the minimum
payment, even if it is not the full balance.
Gather pertinent files.
Your junk mail can be of great value here. Collect the solicitations
from other companies, particularly those that offer lower interest rates. This
will serve as your leverage against the card issuer so you can convince them about
your case.
Pick up the phone.
The most recommended way to deal with your creditor is through
speaking with them over the phone. Get your card statement and find the phone
number of your creditor. Instead of speaking with the first person who answers
the phone, ask for the supervisor. Once the right person is on the line,
request for a name or at least an identification number. Write it down along
with the date and time you spoke with him or her.
Ask for a lower rate.
Tell the supervisor that you want to get a rate reduction. This is
where the other offers become valuable. Mention them along with the name of the
card and the lender. This technique can be effective in convincing the
supervisor to keep you as their customer.
Negotiate.
More often than not, you will be given a rate lower than the one
you provided. Attempt to negotiate. For instance, if you are offered with a
four point decrease, go for a six point reduction. Don’t raise your tone;
always be polite. Once the supervisor indicates that he or she can no longer go
lower than what has been offered, you may want to take it.
Ask for a confirmation.
A telephone conversation is definitely not enough. Always request
to have everything in writing. The letter should contain your new rate and the
date when the modification takes effect.
Check your next billing statement. It should have a new interest
rate on the paper. If you notice that the change has not been made, you should
contact your creditor once again. Ask to talk to the supervisor whom you talked
to last time. Remind him about your last conversation regarding the interest
rate drop.
It may be quite a challenge to convince credit card companies to
lower your interest rates. However, if you are persistent enough and you are
able to give them enough reasons to grant your request, you might just be given
what you want.
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