This is a guest post from Andy at SavingUp. It's got some great information on how you can see lower rates on your credit card by doing a little legwork.
For many consumers, the current economy has had an impact on their ability to make ends meet, and some of these consumers may be struggling with high credit card interest furthering compounding their financial difficulties. The fact is, reducing credit card interest is not as difficult as it may seem if you follow a few simple suggestions and do a little research.
1. Gather Copies of Credit Card Statements
Before attempting to lower credit card interest rates, you must first know what interest you are paying. Gather all credit card statements to learn exactly what your current rate is. If you get your statements online, go to the online statement site and print them out in order to determine the interest rates you are paying.
2. Research Rates Being Offered to New Customers
Visit the website for your card issuer to see what introductory rates are being offered to new customers. You can also check your “junk mail” file to see if you have been offered any credit cards with low or no-interest recently that you can use as leverage when speaking to the credit card company.
3. Compare the Rate You Paying with National Credit Card Averages
Many online resources such as Bankrate offer consumers information regarding what the national credit card averages are. Use these resources to determine if the interest you are paying is similar to that being paid nationally.
4. Check Your Credit Score
When you call the credit card company, they will check your credit score before offering any type of interest reduction. For this reason, knowing your score before calling will give you a better idea of whether you qualify for a lower rate and could be used when discussing the lower rate with the card issuer.
5. Call the Credit Card Issuer
The most important thing to remember when calling the credit card company is to stay calm, even if they are not cooperative. In addition, the first person who answers the phone may not be authorized to lower your interest rate. At most credit card companies, only supervisors have the authority to offer lower interest rates. Ask as soon as someone answers the phone if they are authorized to do so, and if they are not, request to speak to someone who is.
6. Request a Low Number Initially
Although you will probably not be successful, start with a low interest rate initially, using the information obtained from the national average research you did earlier. In addition, mention any low or no-interest offers for new customers, pointing out that you have been a customer for some time and feel you should be offered the same benefits as new customers.
7. If Your Request is Refused, Switch Providers
If your credit card company refuses to lower your rates, obtaining a card with a lower rate from another institution can be financially beneficial. Transfer the balance on the card with the higher rate, but continue to pay the higher payment if possible in an effort to pay down the balance more quickly and save interest.
If you are struggling with credit card debt and have fallen behind, you may want to discuss restructuring plans offered by the credit card company for those experiencing financial difficulty. The risk in doing this is that some card issuers may report this information to credit bureaus, resulting in a lowered credit score, but not all of them will do so. This could be the best way to lower credit card interest and work toward becoming financially stable, especially for those who are behind in card payments.
Andy co-founded the Australian SavingUp.com.au savings account comparison website where Aussie consumers can quickly compare details on accounts from a variety of banks and building societies. He has also contributed to their collection of money-saving guides for homeowners and businesses.
