How to Get a Credit Card Interest Rate Decrease

Many people have had the same credit card for years, always paid on time, and never got an interest rate decrease. However, in most cases, these people don’t know the key secret… You must ask!

Think about it; when you’re making a tidy return off an investment every month, are you inclined to offer to take less? Neither are credit card issuers. However, they sometimes will; especially if they think you’re about to move your account to a competitor.

Naturally though, there are certain parameters you’ll need to meet before you inquire. So, here’s how to get a credit card interest rate decrease.


Know What You’re Dealing With

Before you contact your issuer, check your credit score to make sure it’s good. Most rating agencies consider a 700 or above admirable. If you’re rocking an 800 or better, your score falls into the excellent range and no issuer in their right mind will want to see you go. You’ll also want to bone up on the terms of your card agreement, your current limit and your current balance.


The Factors They Consider

When you hit them up for the decrease, the first thing they’re going to do is look to see how cool you’ve been about holding up your end of your deal. They’ll consider the amount of time you’ve had the card, the credit limit associated with the account and how much of that limit you currently owe. They’ll also look to see how much you owe other creditors and whether you’ve ever been late with a payment. If all of your accounts say “pays as agreed” and your balances are in the range considered reasonable, you’re good to go.


See What Others Have to Offer

Test the waters a bit to see what you can get from other issuers. If your credit game is strong, they’re going to want you on their books. Get offers in writing so if your card company says it’s already giving you the best possible deal, you can show them a better one. Just make sure all the guidelines are the same in terms of fees, credit limits, due dates etc. In other words, you want to make sure you’ve eliminated the wiggle room.


Make the Call

The number you need to dial is typically listed on the back of the card. After surviving the seven circles of voicemail hell you’ll endure, politely break it down for the representative as follows.

  1. Tell them how long you have the card.
  2. Tell them your current interest rate.
  3. Tell them your credit score.
  4. Tell them you’ve always been cool about making the payments on time.
  5. Tell them you’ve been getting offers to switch and disclose the lowest interest rate and most favorable terms you’ve been offered.
  6. Tell them if they beat it, you’ll stay with them. But if they can’t, it only makes sense for you to go with the other company.


Once you’ve laid out your case, stop talking and listen.

If you’ve covered all the steps outlined above, you’ll win regardless of what they say. If they can come up with a deal better than the best one you found, you’re golden. If they can’t, take that deal and you’re golden

Either way—you’re still golden.

When you think about it, it just makes good financial sense to do this, regardless of what’s going on in your life. Keep in mind, while things are good right now, things can sometimes turn on a dime and your debts can get out of control. If that happens, a company like Freedom Debt Relief can help you ease your debt load to enable you to get your finances back in order.

Either way, knowing how to get a credit card interest rate reduction is a useful skill to have, and it’s one you can implement today.