6 Tips To Negotiating A Lower Interest Rate On Your Unsecured Credit Cards

Posted on July 13, 2018

If you carry a balance on a regular credit card, the credit card company is basically extracting money from your wallet. Let’s imagine you have a $3,500 balance for a year on a usual 20% APR card. It means you’re allowing the credit card company to get $700 of your hard-earned money just to maintain that $3,500 balance. Beyond that, the higher the balance and the interest rate get, the worse it gets for you.


Fortunately, there are ways to lower interest rates, and this is actually one of the best money-saving strategies you can put to work. It’s not as difficult as you might think. If you knock an interest rate down from 20% to 10%, for example, you can save $350 a year.


There are two main ways to lower the interest rate on your credit cards. One is simply to negotiate a lower interest rate and another option is to transfer the balance to a lower-rate credit card.


Negotiate a Better Interest Rate On Your Unsecured Credit Cards


Believe it or not, keeping a credit card you already have and negotiating a lower interest rate on that card is always better than asking for a new card with a better rate. Getting a new card can damage your credit score as new inquiries will appear on your report and you will always have to keep and pay your old credit balance. This could, in the end, result in a higher interest rate when you look at the overall picture.


To negotiate a lower rate just call the number on the back of your card and start talking. Here are some tips for negotiating a lower rate on your credit card:


Find Better Deals


Do your homework and find better rates with competing credit card companies. Use this information to influence your bank when asking for a lower rate. The credit card company wants to keep you as their customer, so they’ll probably agree to lower the interest rate with one that matches or at least comes close to the one offered by their competitors.


Start with your oldest card first. Loyalty pays. Credit card companies are usually willing to be more flexible with long-time clients.


Know Your Credit History and Credit Score & Don’t Be Afraid To Call Your Credit Card Company.

Don’t count on the bank to offer you a lower interest rate, go ahead and ask for it before they reach out to you. Make sure you know your own credit history and credit score. If you’ve been a good customer, be prepared to demonstrate it by talking about how long you’ve had the card, how much you put on it each month and your history of timely payments. Get information about the competition, know what you’re asking for, and simply make the call. Few people actually take the initiative to do it but those that do usually get a better deal.


Keep Asking For A Lower Interest Rate


Persistence is key. If you’re told it is not possible, keep trying until you can speak with a manager.  Insist to be connected with a representative who is willing to work with you. You don’t want to call them every day, but there’s nothing wrong with giving them several phone calls within a few months in order to stay on their radar.


If negotiation didn’t work for you, try transferring your balance to a new unsecured credit card.


Transferring Your Balance to a New Unsecured Credit Card


This approach involves transferring your credit card balances to another unsecured credit card with a lower interest rate or at least a low introductory rate.


You’ll want to shop around for the best transfer deals. Deals vary widely so you will have to put in some effort up front to make sure you get a good one. Some of the things you should keep an eye on are:


  • Annual fees
  • Balance transfer fees
  • Any other strings attached.


Most of the new credit cards that offer a low introductory rate have attractive terms but they expire quickly. So be careful with those adjusted interest rates. If you transfer some of your balance to a new card with a lower interest rate, make sure you pay it off before the introductory rate expires. On the other hand, make sure the balance transfer process goes smoothly by including the amount you wish to transfer on the new credit card application.


Whatever you do, don’t get desperate! No matter how difficult you think it is, it’s possible to lower interest rates and keep them low over the long term.


At FastUnsecured.com we can help you get new cards at an attractive 0% into APR and a 9.6% Average APR after the introductory period ends. We offer 60-Minute Approvals and Funding in 72 hours!


Apply for a Free Credit Analysis now!

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