Interested in a lower interest rate? Just Ask
Sunday, January 6, 2008 | | |By Sally Herigstad
Friday, April 25, 2008
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I have heard many times that if you have good credit, you should ask your credit card company to lower your interest rates. What is the best way to go about this? Is it likely that they will lower my rates or should I same sentence?
-- Amanda
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Dear Amanda,
Yes - you can just ask for a credit card lower interest rates, especially if you've been diligent to make all your payments on time. In fact, I did it myself. Here's how!
We have three cards, so I decided to see if I could ask for and obtain lower interest rates by making a phone call. The representative of customer service to the first bank told me he had to talk to my husband Gary because he is the first cardholder. Fortunately, Gary was at home. He said Gary, it could reduce the rate of 1.75 percent, to 17.99 percent - the prime rate plus 12.74 percent. He said: "It help you get started in the direction you want to go." He said we could call again in six to eight months and get back down, but 1.75 percent is lower the more they at a time (1.75 percent May not seem much, but if you carried a $ 5,000 balance, which could save you about $ 90 per year.)
That was easy! I called the next, which is in my name. I listened to bad music for about 20 minutes and finally got a representative. When I started to say that I had this account for 10 years, she has broken, "I know what you are going to ask. You want a lower interest rate."
"Yes," I said. "I was wondering if you had a better rate or a different plan."
"You already have the lowest rate," she said. "Actually, it fell by 20.15 percent to 19.15 percent."
"There is nothing you can do?"
"No, but you can talk to a supervisor."
She transferred to a man who said the same thing - I have the best rates. He added that it is more than 10.19 percent of the prime rate.
The phone off, I realized that the base rate has not been 9 per cent (19 per cent less 10 per cent) for some time! I called back and talk to a third representative - a woman with a nice Southern accent. I explained to him that my rate is supposed to be the prime rate plus 10.19 percent. The prime rate is currently 5.25 per cent and, therefore, my rate should be 15.34 percent, 19.15 percent. She said that the prime rate was nearly 9 percent the last time they changed the rate a year ago. She said store cards do not follow the same rules as regular credit cards. She added, "Everyone knows store cards have a higher APRs (annual percentage rate)." I do not think everybody knew. She said: "Well, they should!"
It takes more time than I expected, mainly due to take a long time. I found the statement of my third card and found the interest rate was 1.9 percent. I can live with that. More phone music!
In summary:
* It is easy to ask for lower interest rates, but it takes time. Call when you are at least half an hour per card.
* Before calling, know the current base rate.
* The first cardholder should probably be there.
* Some cards have more latitude than others. Store cards and cards that provide benefits might be less flexible.
* If you do not get what you want, write a letter. I always think my department store card rate is too high, but rather than talk of a fourth person, I'll write. More importantly, I'll pay the card balance off each month from now. They can make the interest rate as high as they want, but they can not make me wear a balance!
* Call the bank again in six months or a year and ask again, whether or not you got a lower rate.
Go ahead and call your credit card companies! Listening to music phone for most of your lunch May be a small business to pay less interest on your credit card balances.
Friday, April 25, 2008
provided by
creditcards.jpg
I have heard many times that if you have good credit, you should ask your credit card company to lower your interest rates. What is the best way to go about this? Is it likely that they will lower my rates or should I same sentence?
-- Amanda
More from CreditCards.com:
• Bump frequent Flier Miles with Sign-up bonuses
• Do you have a credit card? Use it wisely
• Awards Drive pushes for Old-Style gas cards in the ditch
Dear Amanda,
Yes - you can just ask for a credit card lower interest rates, especially if you've been diligent to make all your payments on time. In fact, I did it myself. Here's how!
We have three cards, so I decided to see if I could ask for and obtain lower interest rates by making a phone call. The representative of customer service to the first bank told me he had to talk to my husband Gary because he is the first cardholder. Fortunately, Gary was at home. He said Gary, it could reduce the rate of 1.75 percent, to 17.99 percent - the prime rate plus 12.74 percent. He said: "It help you get started in the direction you want to go." He said we could call again in six to eight months and get back down, but 1.75 percent is lower the more they at a time (1.75 percent May not seem much, but if you carried a $ 5,000 balance, which could save you about $ 90 per year.)
That was easy! I called the next, which is in my name. I listened to bad music for about 20 minutes and finally got a representative. When I started to say that I had this account for 10 years, she has broken, "I know what you are going to ask. You want a lower interest rate."
"Yes," I said. "I was wondering if you had a better rate or a different plan."
"You already have the lowest rate," she said. "Actually, it fell by 20.15 percent to 19.15 percent."
"There is nothing you can do?"
"No, but you can talk to a supervisor."
She transferred to a man who said the same thing - I have the best rates. He added that it is more than 10.19 percent of the prime rate.
The phone off, I realized that the base rate has not been 9 per cent (19 per cent less 10 per cent) for some time! I called back and talk to a third representative - a woman with a nice Southern accent. I explained to him that my rate is supposed to be the prime rate plus 10.19 percent. The prime rate is currently 5.25 per cent and, therefore, my rate should be 15.34 percent, 19.15 percent. She said that the prime rate was nearly 9 percent the last time they changed the rate a year ago. She said store cards do not follow the same rules as regular credit cards. She added, "Everyone knows store cards have a higher APRs (annual percentage rate)." I do not think everybody knew. She said: "Well, they should!"
It takes more time than I expected, mainly due to take a long time. I found the statement of my third card and found the interest rate was 1.9 percent. I can live with that. More phone music!
In summary:
* It is easy to ask for lower interest rates, but it takes time. Call when you are at least half an hour per card.
* Before calling, know the current base rate.
* The first cardholder should probably be there.
* Some cards have more latitude than others. Store cards and cards that provide benefits might be less flexible.
* If you do not get what you want, write a letter. I always think my department store card rate is too high, but rather than talk of a fourth person, I'll write. More importantly, I'll pay the card balance off each month from now. They can make the interest rate as high as they want, but they can not make me wear a balance!
* Call the bank again in six months or a year and ask again, whether or not you got a lower rate.
Go ahead and call your credit card companies! Listening to music phone for most of your lunch May be a small business to pay less interest on your credit card balances.
