When To Ask For A Lower Interest Rate

If you want a better interest rate, sometimes, all you have to do is pick up the phone and ask for it. According to Consumer Reports, over 50% of people who call their credit card issuer to negotiate a better interest rate do so successfully. If you’re unhappy with your current APR, why not give the issuer a call and see if anything can be done.

Of course, if you’ve used your credit card delinquently over the last year or so, there’s little chance you’ll get it. There’s a perfect time to ask for a lowered rate (when your chances of getting approved are the highest), a good time (when you’ll get a fair chance) and a bad time (when nothing you say is likely to get it).

When is it actually a good time to ask for lower interest rates?

• You have no late payments and have stayed under your credit limit in the last 12 months. If you’ve paid your balance in full for several months, that’s even better.
• Average APR for most credit cards is 14%. If you are in the average range or higher, there’s a lot of room for getting it lowered.
• If you started out with a low rate and have had it increased several times for various reasons.
• If you’ve owned the same credit card for several years, have a good payment history and with your balance under 30% of your limit.