Can I Really Just Ask For A Lower Rate?
When most folks think about how their credit card company decides their interest rates, most imagine a room full of executives gathered around a huge conference table. They have graphs and charts and there is arguing everywhere. After significant deliberation, a number is decided upon and carved in stone. This is your credit card’s interest rate and it is unchanging and unmoving throughout time (unless the card company decides otherwise). But did you know you have more control over the interest rate you pay then you think? It’s true! There are several things you can do to influence your rate, here is a quick guide.
To get the best results from your credit card company, it helps to tell a single white lie. Now, giving your credit card companies a false story is never a good idea, but in this case, you can legitimately save thousands of dollars in interest over the life of your card. Here is what you can do. Call your card company and simply let them know that you have gotten numerous offers from many other card companies and you are seriously considering transferring your balance to a lower rate card if they can’t help you. In most cases, the operator will then put you on hold and most likely speak to a supervisor. They will run a simple equation to see if you qualify and then they will take you off hold and give you the answer. A recent survey shows that, more times then not, the card company does show some flexibility and they promptly lower your rate. There are some things you can do to get the card company on your side, however.
• Have at least a year of on-time payments – Giving your card company a line about having numerous low-interest card offers will be hard to believe if you have been late three of the last four months. Your card company doesn’t have a complete picture of your whole financial situation, but they can only be fooled so much.
• Have a majority of your payments over the last year be for more than the minimum – Most card companies will interpret minimum payments as a sign of financial hard times, whether they actually are or not. If you’ve only paid the minimum 11 of the last 12 months, the card company will most likely believe your story and they won’t help you out.
• Be nice – It sounds silly, but supervisors have a lot of power when it comes to helping you out. If your call is made with the tone of voice that is rude, pompous or just plain mean, no one is going to go out of their way to help you out.
• Be aware that the higher end your card is, the more likely they will be to help you – If you’ve declared bankruptcy in the last 5 years and you have a sub prime credit card that you are looking to get out from under, chances are, they will be less likely to make concessions, whereas, if you have a gold or platinum card and sterling credit overall, and you call for a lower rate by threatening to cancel out the card for a better one, you are much, much more likely to get legitimate movement on your rate.