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5 Tips on How to Negotiate Lower Credit card and Interest Rate

An enormous rate of interest for your credit card debt is a devastating blow for your financial freedom. Some may require the guidance of a credit advisor. Many can negotiate lower interest on their own, potentially saving thousands of dollars. This article has mentioned 5 tips by using which you can lower the credit card interest rate.

Before you dive into those four tips, remember one thing in advance that it is Negotiation. The bank will ultimately have the final say whether they will give you your request to replace the interest rate.

But on the bottom line, in any negotiation, you don’t need to be a skillful negotiator to get the bank to reduce your interest rate. But make sure one thing, you have a good repayment history with that particular credit card, and you have to prove yourself as a highly credible borrower.

Banks always like to maintain business with trustworthy users of credit, and so If you followed these 5 steps, the bank would be willing to reduce your credit card interest rate.

1. Strengthen your Credit history

Bank wants to lend money to those who are highly lendable and have a strong credit profile. If your credit score has increased in the past years, you can simply ask for lower interest rates based on your credit history. This is one of the reliable factors which might force them to go ahead and reduce your interest rate.

2. Find your Debt income ratio

If you have paid off different kinds of debts, it will improve your Debt to income ratio. This is the factor where banks look at when it comes to extending credit to you because you have paid off such kind of debts by which you are becoming more creditworthy.

3. Find out your stats

It would help if you found out how much your score has improved. If your Debt income ratio is between 25 and 36, then it is fantastic for you. You should know all the stats and positive factors in advance. The more willing you’re going into a negotiation, the better your results would be. So before placing the call, you need to find out your position by yourself in advance.

4. Line up some other offers

Before making the phone call, the last steps you can do are lining up some of the other offers. You might choose to discuss your information regarding other deals available from different businesses and explain why you might transfer your balance to other credit cards if you didn’t get the lower interest rate.

5. Make the phone call

Many people get intimidated when it comes to calling the bank because it might feel like you’re making a demand, and indeed, you don’t want to have that approach when it comes to Negotiation. You have to be polite and courteous during the phone call and inquire about everything related to that. Remember, you are making the request, and the bank is not required to do this. So you would have to be positive. 

If they still denied your request to reduce the interest rate, now it would be your opportunity to open up a new line of credit with a new bank.

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