5 Ways to Negotiate New Credit Card Rates

Credit card debt is a common problem that can be extremely difficult to resolve. No matter how little you use your card, if you carry a balance from month to month, you will be incurring interest – and if you’re only paying the minimum amount required, it can take years to finally get out of debt. Lower interest rates are an absolute necessity if you’re serious about paying off your credit cards. But how can you secure a lower APR without damaging your credit or defaulting on a payment? All you have to do is ask! Here are five ways to negotiate new credit card rates, risk-free:

1. Play up your history as an excellent customer. If you always make your payments on time and you’ve been a faithful customer for several years, you may have far more leverage than you think when it comes to negotiating the terms of your credit card agreement. When you speak to a customer service representative or manager about the possibility of lowering your interest rates, make sure to emphasize your loyalty and the consistency of your payments. Remember, they want to keep you as a customer – and that gives you a valuable edge in these negotiations.

2. Hint that you may have a better offer on the table. One of the easiest ways to approach the topic of securing a lower interest rate on a particular card is to state that you are considering offers from other companies with more reasonable interest rates. This may or may not be true, but it will almost certainly make your existing credit card company more inclined to fight for your business by agreeing to reexamine your rates.

3. Make sure to ask for a lower fixed rate. Introductory and other limited time rates may be extremely low, or even nonexistent, but it’s extremely important to pay attention to the fine print. Eventually, those introductory periods will end, and you may be stuck with an interest rate that is sky-high. When asking for a lower APR, always specify that you want your new rate to be fixed. That way, you won’t have to worry about any unpleasant surprises down the line.

4. Stay calm, positive – and persistent. Next to your background as a valuable customer, attitude is everything. Despite the fact that the process can be frustrating, it’s essential to maintain a calm, positive tone. No one wants to deal with an individual who is angry, overly emotional or desperate. Keep your voice professional, and don’t forget to be persistent! If the representative you’re speaking with tells you no, ask to talk to a manager. If that doesn’t work out, try calling back at a different time in order to speak with a new manager. Keep at it and success is practically guaranteed.

5. Try shopping around. If your current credit provider seems unwilling to lower your interest rates, a different company may be more accommodating. Pay attention to the offers you receive in the mail, and look for those with no annual charges and a low fixed interest rate. If you find a fantastic offer, you may want to transfer your balance onto that card instead.

If you need additional help negotiating new rates for your credit cards, try consulting a professional financial advisor or reading a book like Robert Allen Debt Reversal. When it comes to combating debt, knowledge can be your most valuable weapon.