Most credit cardholders do not bother to ask their issuer for a lower interest rate. They just stick with what their issuer tells them. But credit card companies won’t volunteer to reduce your costs unless you ask for it. Statistics show that 57% of cardholders who called in for a reduced APR have been granted with their requests. So before you say that it’s not worth the try, better try it out for yourself.
Why Ask for a Lower Rate
Being able to lower your present rate even a few points can make a big difference. Sure, you can avoid the APR by simply paying off your balances in full each month. But for larger purchases where you may need to pay in installments, a lower rate means more savings.
Are You a Good Candidate?
Who are mostly likely to be granted with a lower interest rate? Customers with excellent credit rating have better chances of getting their wishes because of their good performance. Before asking for a low rate, ask yourself, “Am I punctual when submitting my payments?” “Do I have past due charges?”
If you presently have due balances, then pay them off as soon as you can. Submit your current payments on time to build-up your credit rating. After a few months of consistent payments, it’s time to call your credit card company to request for a lower rate.
A credit card company can also consider your debt to income ratio. How much you charge to your credit card each month can be compared to your earnings? How much of your credit limit you use can be questioned as well. Cardholders who keep their credit usage minimal are seen as ideal customers.
People who use a secured credit card may not be in the position to demand for lower rates because they are seen as high-risk borrowers. On the contrary, an issuer will gladly give in to your demands just to keep a great customer.
What to Say
The best way to convince your issuer to adjust their terms is to stress why you are a customer worth-keeping. If you have been a long time cardholder of the company, then it will definitely work to your advantage. Do research about the interest rates that other issuers offer, particularly those that offer much lower rate than what you pay.
You may say that you are considering to switch to another card to cut back your costs and that you will be willing to stay if they can match what the other issuer offers. Be sure to ask for the supervisor or the manager, since these are the people who can give you a better response. A customer representative may not be able to decide on these matters so it’s best to talk straight to the person who does.