Home > 2013 > Credit Cards

6 Best Ways To Get Your Credit Card Interest Rate Lowered

Advertiser Disclosure Comments 0 Comments

When credit card users carry balances, their top priority should be to lower their interest charges. There are two ways to accomplish this: Decrease balances by paying down debt, or find a way to get a lower interest rate. The problem is that paying down debt requires cash, but getting a lower credit card interest rate does not.

So how do you do it? Try these proven ways:

1. Ask

About half of all credit cards feature a range of interest rates, and the one you received depended on your credit worthiness at the time you applied. Nevertheless, much can change after you received your card. If you weren’t given the lowest possible rate, and have reason to believe that that your credit score has gone up, call your bank and request to have your interest rate lowered. It can’t hurt to ask, and you might be pleasantly surprised.

2. Ask again

Even when a bank’s representative refuses your first request for a lower rate, don’t be bashful about calling back and trying your luck again. People at the same bank may react differently to the same request.

3. Threaten to close your account

Once you have tried making a polite requests a few times, call your bank and inform them you are considering closing your account. You will likely be transferred to a representative in the retentions department whose mission is to keep you from closing your account. Inform the representative you need a lower interest rate and you will have to close your account if they cannot offer you a more competitive rate.

4. Change products

One option that cardholders can request is to have their account moved to a different card with a lower interest rate. For example, if you signed up for a rewards card, a different card without rewards will almost always offer a lower interest rate. As always, those who carry a balance should never be worried about earning rewards. Unfortunately, it is unlikely that a bank will transfer your existing balance to a different card that they issued, so the lower rate will only apply to new purchases. Therefore, this solution is best for those who don’t currently have debt, but may occasionally need to carry a balance.

5. Perform a balance transfer to an existing card

Cardholders who have debt on one of their cards can transfer their balance to another card with a lower interest rate, so long as it was issued by a different institution. Just keep in mind that a balance transfer fee may apply.

6. Open up a new card with a promotional balance transfer offer

There are many credit cards that offer a reduced rate or 0% APR promotional financing on balance transfers for between six and 18 months, typically with a 3% balance transfer fee. Cardholders who receive one of these offers can eliminate interest payments for some time period. Again, just be sure that the promotional offer is from a different issuer than the card you intend to transfer the balance from.

It is no fun to pay credit card interest, but there are some steps that you can take to pay as little as possible. By trying some of these six tactics, cardholders can cut their interest rates and use their savings to more quickly pay off their debts.

Image: iStockphoto

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Our Owners

Credit.com is owned by Progrexion Holdings Inc. which is the owner and administrator of a number of business related to credit and credit repair, including CreditRepair.com, and eFolks. In addition, Progrexion also provides services to Lexington Law Firm as a third party provider. Despite being owned by Progrexion, it is not the role of the Credit.com editorial team to advocate the use of the company’s other services. In articles, reporters may mention credit repair as an option, for example, but we’ll also be sure to note the various alternatives to that service. Furthermore, you may see ads for credit repair services on Credit.com, but the editorial team isn’t responsible for the creation or implementation of those ads, anymore than reporters for the New York Times or Washington Post are responsible for the ads on their sites.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team