Five Steps To Getting A Lower Interest Rate On Your Credit Cards

Now that credit card companies have raise interest rates and fees on their cards, it is a good time to call them back and negotiate lower rates. The reason is that most customers will not call and ask for lower rates. A few others will threaten to close their account. Most will just accept it and go on.

Here are five steps to use in negotiating a lower interest rate with your credit card companies.

Collect Offers from Other Card Companies. If you are obtaining credit card offers in the mail, collect a small list of the best offers (usually 0% interest for a length of time (six to twelve months). If you do not have any, then go onto the Internet and obtain them by doing a search on Google for "0% interest credit cards." You should be able to find three or four pretty quickly.

Bookmark these sites and copy onto paper their details that you can refer to when talking to your existing credit card companies.

Make a List. Get a piece of paper (or use a spreadsheet on your computer) and begin to list all of your credit card accounts and the balances along with the interest rates you are paying. Be sure to note the highest balances and interest rates and number them highest to lowest. The idea here is to begin with the card that is costing you the most in interest.

Call the Credit Card Company. Get your list and begin to call the credit card companies, beginning with the card that is costing you the most. Initially, on this call, you will not be speaking with someone who is authorized to make changes on your interest rates. You will have to press your case with this customer service representative until you are allowed to speak to a decision-maker (a supervisor) who has the authority to lower your rates.

Make a Move. If you do not get the decision-maker to lower your rates, or to lower them enough to satisfy you, then politely tell them that you are going to be moving your balance to another card. This will usually help you get farther in your negotiations. But, if not, then transfer your balance to the new card.

Close Your Account. When you close your account, you will find that you will be transferred to a person whose job it is to keep your account active. You will get even more generous offers. But you must stand firm if they do not at least match the other offers that you have obtained.

Understand that you will have varying degrees of success based upon your credit rating and history, and payment history with them. However, credit card companies do not want to lose those accounts that are good paying accounts, so your chances of success are relatively high. As a consumer, you are in control of your own destiny as far as your finances are concerned and so it makes sense to keep watch on your accounts in order to benefit from better offers which help improve your overall financial picture.