Credit Score Articles

Ways To Negotiate Your Credit Card Rate

Couple making phone call to credit card company.

There are a number of reasons you may want to negotiate your interest rate with your credit card provider. Hopefully, it’s because you know you deserve better and not because your debt is becoming unmanageable. If you pay your bills reliably each month and have a strong credit score, lenders will want to keep you as a customer and they may be willing to compete for your business.

Take a look at a few ways to negotiate your credit card rate.

Your Credit Standing and Payment History

The interest rate you are assigned depends largely on your credit standing at the time you applied for the card. If much time has passed, you may qualify for a better rate. The same is true if you have maintained a positive payment history on your credit card account. Combine the two, and you may have a good reason to ask for a lower rate.

Contact Your Lender Directly

Your credit card provider probably isn’t going to reach out to you with a lower offer, but other companies will! Compare different offers you get for the best rates and call your lender.

Check your credit score first and tell them an interest rate you know you deserve. Shoot for something in the 9 – 12 percent range. 

Consider Transferring Your Balance

If you try and try again, and your request is continuously denied, you have the option of choosing a new lender and transferring your balance to a new credit card with a lower rate.

Take advantage of the best teaser rate on a balance transfer you can find, but beware of associated fees that could squash your savings.

In the end, you’ve got nothing to lose, so you might as well try negotiating your rate with lenders.