Just one call and you could be saving thousands on interest…
Many consumers unknowingly pay a high annual percentage rate (APR) on their credit card balances when just one phone call could lower that rate substantially. Television station KTRK in Houston, Texas, put the idea to the test recently when they hired ‘card testers’ to call their credit card companies and ask for lower rates. Approximately half succeeded in getting a lower interest rate with one tester, Joelle Miller, getting an astounding reduction of almost 7%.
Before you make that phone call, here are some suggestions to consider:
1.) Know Your Credit Score:
This is the probably the defining factor in having your rate lowered. If your credit history shows late payments or maxed out credit cards, you’ll be much less likely to secure a lower interest rate. Lenders are more apt to lower your rate if you have a good / excellent credit because you have options to move your balances to a competitor. Know your credit score before calling. If you don’t know it, you can get a free copy from annualcreditreport.com.
2.) Look For Better Deals:
Before you ask for a lower interest rate, make sure you know what else is out there so you have some bargaining leverage. Research credit card offers from other credit card issuers so you know the “going-rate” for people at your credit level. Let the representative know that you are prepared to cancel your account and move to the offer you’ve found online or elsewhere, if they’re unable or unwilling to match the deal.
3.) Be Stern / Aggressive:
Know what you’re talking about and talk tough. If you’re paying 12% or higher and have good credit, ask the representative point blank why you’re paying such a high rate. Remind them of your great credit score and that you’ve never made a late payment. Threaten to cancel your account and go elsewhere, if you’re refused a lower rate. At this point, you’ll probably be sent to a supervisor in the retention department whose job it is to keep their customers happy. They’ll also have the authority to make bigger concessions. If you’re not directed to this person, make sure you ask to speak to a manager.
4.) No Doesn’t Necessarily Mean No:
If your request for a lower interest rate is turned down, call back in an hour and you’ll be speaking to a different representative who may have a different view on your situation. Although most rate adjustments are based off of factors that can’t be changed, many times the decision is at the sole discretion of the customer service representative you’re speaking to. Take a different approach this time and see what happens…
If all else fails, you can always switch credit cards. If you’re an excellent customer with a high credit score and good payment history– you should be rewarded. Most credit card companies will be happy to have you as a new cardmember if you’re not being treated right by your current credit card issuer. Just compare credit card offers and apply online for an offer that meets your criteria. If you’re turned down– stick with your existing credit card. If you don’t receive the terms you’re looking for– don’t accept the new offer. But if you’re approved– congratulations! You just received the lower rate you were looking for!
* See our complete list of 0% APR and low interest credit cards >>>