You are here: Home Finances Credit: Score, ... How To Manage ... Ask For A Lower Rate Of ...
Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

How To Manage Credit Card Costs

Ask For A Lower Rate Of Interest

Next » « Previous


Consider calling each of your credit card companies to ask for a lower rate of interest. You can do this with the company's "regular" rate -- and particularly if your rate is raised because of a late payment or other reason.

Before you call think about everything you can use that will help you get a lower rate. Decide which are best arguments, and in which order to use them. Basically you are building an argument why it is in the company's interest to change your rate of interest.

Factors to consider are:

  • Telling the company about your health condition could be helpful in the negotiation. It may seem like a credit card company is a large, non-caring corporate entity. In reality, you're talking with people who may be sympathetic to your situation.
  • What caused the financial crunch? Was it something unexpected and beyond your control such as medical bills?
  • How long you've been with the company. (The longer the better.)
  • Your history with the company. For example, the average amount you've charged each month, and your history of paying on time. (Credit card companies want to keep people who give them a lot of business -- particularly people who pay a lot of interest.)
  • The credit card offers you (or your friends) have been getting in the mail. What rate of interest have those cards offered? How do those compare to the rate you're paying? (It would help to gather current credit card statements and any pre-approved applications so you can quote the rates precisely.)
  • If the rate were low enough, would you be willing to transfer a balance from another account to the one in question?
  • Keep in mind:
    • The company is making money off of you. You're in the driver's seat.
    • A creditor would rather work with you than end up with a vastly reduced sum if you go into bankruptcy.
    • You can threaten to stop using the card entirely.

When you're ready, call each card company. The phone number is on your card or on the application. Let the person know you are calling to obtain a reduction in the rate you pay on your credit card. Is the person authorized to make a change? If not, ask to speak with a person who can authorize a reduction -- generally a supervisor.

Expect arguments like "our rate is fixed." Be persistent but firm until you get a yes. The card company (especially if you already have the card) won't want to lose you. Key questions are:

  • "What can you do better for me" and
  • "Is there a different card you can offer me with a better rate"?

If the representative you speak with balks at lowering your rate, ask to speak with his or her supervisor.

Please share how this information is useful to you. 0 Comments


Post a Comment Have something to add to this topic? Contact Us.

Characters remaining:

  • Allowed markup: <a> <i> <b> <em> <u> <s> <strong> <code> <pre> <p>
    All other tags will be stripped.