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Some Advice on How You Might Negotiate Lower Credit Card Interest Rates

By admin | July 26, 2010

Are you aware that credit card companies actually earn billions of dollars a year just from interest they collect from their customers alone? However, as the competition becomes tougher among the financial groups, these companies offer some incentive to their customers to get lower credit card interest rates. It is because of this that you, as a cardholder, should take advantage of this privilege and use it to your benefit. You can improve your business if you learn to take advantage of the finance opportunities provided to you by financial institutions.

Using this knowledge now, you at least have an idea of your capacity to negotiate your way to better interest rates. Better means lower and the lower you get, the more chances you can save a lot of money. The best way to start is by calling your customer service hotline and ask the lowest rate they can offer you at this time. Here are some great tips you can use when negotiating with your credit card companies.

Don’t just go on calling your credit card company demanding for a lower interest rate on your credit card; try to check out first your payment history with them. If you are used to being late on your payments or may have missed a few payments in the past, chances are, you wouldn’t be able to negotiate much. If you show that you are a trusted a loyal consumer, chances are they would offer you a much lower rate than what you currently have with them.

Don’t get easily swayed by introductory offers. What you actually need is a fixed rate offered by the company that has the lowest interest that you can find.

Before making that call, make sure that you have checked out the prime rate around the country. This is important because you can use this as a benchmark for your negotiations with the bank. You might encounter some companies who would refuse to make such a low offer, but at least they know that you are an educated consumer and that you have at least a benchmark where to go next in your negotiation.

Never attack the customer service agent. Speak with a mild voice that still commands respect and assurance that you know what your rights are. Keep yourself level-headed and try to explain your current situation. You are not talking to a robot or a machine, but instead to a human being who could empathize with you.

If you feel like you are going on circles with your negotiation, change your strategy and do not blow off some steam. It is not advisable to give a bluff to your credit card company unless you found a better offer from another financial institution. And when you have decided to transfer, then it is best for you to close your credit card, pay off the remaining debt and move on to the better offer.

Just remember that you do have the power to save yourself from a lot of mounting debt by negotiating your interest rates. You’ll be amazed at how much you can save in the process.

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