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How Can I Get My Credit Card Interest Rate Lowered?

Article Details
  • Written By: B. Miller
  • Edited By: Bronwyn Harris
  • Last Modified Date: 14 April 2014
  • Copyright Protected:
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    Conjecture Corporation
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Getting your credit card interest rate lowered can be a great way to not only save money but also improve your credit score. It should certainly not be your first step, however, if you are attempting to fix bad credit, as it will simply not be possible. You may be surprised, though, at how easy it is to get your interest rate lowered if you have relatively good credit.

The simplest way to get a lower interest rate on your credit card is to call your creditor and ask. Most creditors would rather keep your business by giving you a lower interest rate than lose you to another creditor offering lower rates. However, you need to be realistic when asking to get your interest rate lowered.

If you pay your bills on time, maintain a low or zero balance, and have had a long relationship with the company, you are much more likely to get your interest rate lowered. If you have been late with payments, have astronomical balances, or are a relatively new customer, the creditor is under no obligation to work with you and give you a lower credit rate. In fact, you may notice that your interest rate is increasing or your available credit is decreasing due to irresponsible spending habits.

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The best way to prevent that from happening is to practice good debt management strategies, including paying your bills on time, always paying more than the minimum payment required, and maintaining a household budget. You need to learn to control your debt yourself before a credit card company will do it for you. Once you have proven yourself a responsible person, it will be much easier to receive lower interest rates and loans.

If you feel that you have been responsible, paid your debts on time and deserve to have your interest rate lowered, but your credit card company will not work with you, you can shop around for credit cards. Look for credit cards that offer low, fixed interest rates. Many credit cards now offer cashback rewards, points, or airline miles for paying on time. Be wary of credit cards that offer low introductory rates, however, as once the introductory period is over, the interest rate can be quite high. If you are denied a credit card, you are entitled to an explanation in writing, which can alert you to any possible errors or problems on your credit report.

Getting your credit card interest rate lowered is a simple and easy way to signify potential lenders and credit bureaus that you are a responsible person. This can make it much easier in the future to acquire loans, such as a mortgage or car loan. Checking your credit report regularly is one of the best things you can do to assure your good credit.

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