One of the realities of the current credit market crisis is that credit card interest rates may be going up soon. Due to worries over risk of default and liquidity problems, many credit card companies are cutting back on perks and upping interest rates. The good news, though, that it is possible to negotiate with your credit card company.
Asking for a lower credit card interest rate
In most cases, customer service representatives are authorized to offer someone with an account in good standing a 1% to 3% reduction in interest rate (if not, you can ask for a supervisor). This can be very helpful in some cases, and can help you pay off credit card debt faster. However, there are some things to keep in mind when you are angling for a lower credit card interest rate:
- You need to have good credit.
- You should have a good payment history.
- You should be a long-time customer.
- You should be in a position to carry out the threat of balance transfer.
The fact of the matter is that even people with good financial habits are being hit by interest rate increases. If you fall into this category, ask your card issuer for a credit card interest rate cut, but always remain polite.
If you do not get your preferred interest rate, transfer the balance.
