How Can I Get Credit Card Companies To Lower APR?

Interest rates on credit cards especially for new card holders can be extraordinarily high. If you need a credit card and have never had one before, chances are, you are going to be charged a high interest rate. That doesn't mean that rate will have to stay high, in fact, you can plan your strategy right now to get that lower interest rate in just 6 short months. You can also use this strategy as a tool towards credit card debt relief. Here is how you can do it.

Establish A Good Credit Rating

The first thing a new cardholder needs to do is establish a good credit rating. You can do this by following these few simple steps:

1. Pay your credit card bills promptly. Try and pay in advance of the due date, but, don't pay late. A late payment of even a day can hurt your credit rating and make it less likely that you can get those interest rates lowered down the road.

2. Send in more than the minimum payment each month. By paying more than the minimum payment you are showing the credit card company you are more than capable of paying those credit card payments. Better yet, if at all possible paying off those credit card bills in full each month will increase your chances of getting those interest charges lowered down the road. A credit card company is in the business to make money.
They make that money by charging interest on charges that are held over month to month. If you have no balance held over, they won't be making money so they are more likely to lower those interest payments for 2 reasons. First, since they aren't making a profit because you aren't paying interest they won't be losing out by lowering your interest.
Second, by lowering your interest rates they may be encouraging you to charge more on your card and hope that in doing so, you will have to carry your balance over month to month and they will make a profit.

3. Even though you have good credit, make sure your credit with the company you are seeking lower interest payments from is excellent.

Do Some Research

After you have spent 6 months establishing your credit it is time to do some research. Check out other credit card companies and see what interest rates they are offering to customers with good credit. Choose two or three companies that offer the lowest rates.

Make A Phone Call

Now that you have the names of some credit card companies that offer lower interest rates than you are getting make a phone call to your credit card company. Make sure to be courteous and polite. Give them your name and credit card number and then tell them exactly what you want.
Point out to them that you have excellent credit with their company, and then tell them how much lower interest people with your credit are paying with other credit card companies. Come right and ask them if they would be willing to lower you interest rates so they are comparable with what other credit card companies are offering.
In many cases, the credit card company will almost instantly agree. In other cases, the person you are talking to may have been instructed to give a standard negative response to such a request. If you get a negative response ask if you can talk to a supervisor. In most cases supervisors are in a better position to agree to lower your interest rates and will do so if you clearly state your reasons and are polite.

What Happens If The Credit Card Company Says No

There are times that no matter how good your credit may be or how articulate you express your reasons for feeling that you deserve a lower APR the credit card company will decline to lower your rate. If this happens, politely ask them what you can do so that they may consider lowering your interest rates in the future.
It may be, that they simply want you to build up a few more months of good credit before agreeing to lower your rate or there may be some other reason for their refusal. Knowing what their reasoning is will help you decide whether to stay with this credit card company or find a new one.