How To Negotiate Lower Credit Card Interest Rates
OK, so we have been told that the economic recession has come to an end. Companies are reporting profits again and the housing market is starting to recover. However, the relief to consumers doesn’t seem to be that drastic. The unfortunate reality is that many consumers struggle each and every months simply to make their bills. As most consumers in this position are dealing with credit card debt, I feel that it is important that you understand your options to reduce your credit card interest rates.
Before we get into how to negotiate credit card interest rates, it is important to be sure that you actually qualify for a lower interest rate first. This means that you have kept you account in good standings, below it’s credit limit and you make more than your minimum payment. If this is not the case, you may want to look into how to qualify for a credit card hardship program. However, if you do meet these qualifications, it is time to get prepared for the negotiations process.
Steps To Negotiating Credit Card Interest Rates
Step 1: Get Prepared: The first step to successful credit card interest rate negotiation is to be prepared. This includes making a list of all of your credit cards, their balances, interest rates, credit limits and payments. Make sure you order this list from highest interest rate to lowest whereas this will help with your negotiation. Once you have done this, you have to prepare yourself to take your business from the bank. Compare balance transfer credit card offers to ensure that you have a last resort escape route.Step 2: Time to negotiate: Now that you have taken the time to get prepared, it is time to start negotiations. The first thing you will want to do is call the customer service phone number for your account with the highest interest rate. Navigate through the automated system and once you make it to a live representative, you will want to say the following:
“Hi, I am calling because I was looking through my credit card statements and realized that this account has the highest interest rate that I currently carry. I love the card and benefits that come with it but I simply can’t see myself paying so much in interest when I have so many balance transfer offers available to me”At this point, the representative will place you on hold to look at your account. When they come back, you will be given one of the following answers:
Answer 1 “I am happy to inform you that your account does qualify for a lower interest rate. Your new interest rate will be __% and will take place as of ___. Is there anything else I can help you with?”If you get this answer, mission accomplished! You have a lower interest rat on your account. Move on to your next highest interest rate and duplicate the process for each of your credit cards.
Answer 2 “I see that you may qualify for a lower interest rate however, I have to transfer you to another department that will be able to better assist you with this matter.”If you get this answer, you are half way there. this means that you will be transferred to the customer retention department. When you get a representative in this department, repeat what you said to the last representative. In this department, you will generally receive answer # 1 at the end of the conversation.
Answer 3 “I am sorry to inform you of this but you do not currently qualify for a lower interest rate. Is there anything else that I may help you with today?”If you get this answer, you unfortunately do not qualify for a lower interest rate with that lender. At this point, you may want to look into balance transfer credit card offers as a form of credit card debt relief.
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