What do you say when requesting CC company to lower interest rate?

[herbmama3-7]

Is there a good aproach or wording that I should consider when calling the credit card companies and ask that they lower the interest rate? I am nervous and want to get it right.

Thanks.

[Juvysen]

I'd threaten to transfer my balance. Whether it's a possibility for you or not. A lot of credit cards offer lower rates on balance transfers, you know? It's a totally plausible story, and presumably you *could* do it.

[midstreammama]

If that didn't work you could always tAlk about the possibility of filing bankruptcy. I mean, hey, it's a possibility for everyone, right?

[zebra15]

First I do my own research.
1. How long have you been with the CC company?
2. Have you ever been late/ over the limit?
3. When was your last rate change?
4. When was your last LIMIT change?(either up or down)

These are somethings the 'bank' looks at ... any time a 'change' was made to your account.... you want to show the bank you are not a risk, you dont make changes to your account, you keep your account in good standing and you want to provide the dates to them if changes occured. Trust me the rep on the phone won't have the info and wont be bothered to look for it.

Then go look for the PRIME rate (this is what the fed charges banks)... this is the lowest possible rate, (which I think is 3.25%).

The prime rate, as reported by the Wall Street Journal's bank survey, is among the most widely used benchmark in setting home equity lines of credit and credit card rates. It is in turn based on the fed funds rate, which is set by the Federal Reserve. .

Then ask them to lower your rate to PRIME, (they wont), ask the bank to justify your rate, (they wont be able to). You will be surprise how HIGH your rate is... You need to decide for yourself how low you want to negotiate your rate and how high up the chain of command at your bank you want to go.

I worked in banking for many many years so I know the vocabulary and how to negotiate with the sharks LOL.

You can tell the bank you are switching to a new card, you will file bankruptcy, etc but the best plan is to educate your self for the call.

[kindchen]

Originally Posted by zebra15

First I do my own research.
1. How long have you been with the CC company?
2. Have you ever been late/ over the limit?
3. When was your last rate change?
4. When was your last LIMIT change?(either up or down)

These are somethings the 'bank' looks at ... any time a 'change' was made to your account.... you want to show the bank you are not a risk, you dont make changes to your account, you keep your account in good standing and you want to provide the dates to them if changes occured. Trust me the rep on the phone won't have the info and wont be bothered to look for it.

Then go look for the PRIME rate (this is what the fed charges banks)... this is the lowest possible rate, (which I think is 3.25%).

The prime rate, as reported by the Wall Street Journal's bank survey, is among the most widely used benchmark in setting home equity lines of credit and credit card rates. It is in turn based on the fed funds rate, which is set by the Federal Reserve. .

Then ask them to lower your rate to PRIME, (they wont), ask the bank to justify your rate, (they wont be able to). You will be surprise how HIGH your rate is... You need to decide for yourself how low you want to negotiate your rate and how high up the chain of command at your bank you want to go.

I worked in banking for many many years so I know the vocabulary and how to negotiate with the sharks LOL.

You can tell the bank you are switching to a new card, you will file bankruptcy, etc but the best plan is to educate your self for the call.

My experience has been that the rep absolutely had all of this information. In fact, if I wanted to know those things, I would call the CC company and ask them to look it up for me.

OP, I have had a lot of success just asking for a lower rate and mentioning that I might need to transfer my balance if they couldn't do it for me. I once called to ask them to waive a late fee, since it was the first time in many years that I had been late, and the rep voluntarily offered to lower my rate. (They also waived the late fee.)

Also, if you don't like what one rep tells you, or if the person doesn't seem helpful, you can always just end the conversation and call back to talk with someone else.

[Norasmomma]

Originally Posted by zebra15

First I do my own research.
1. How long have you been with the CC company?
2. Have you ever been late/ over the limit?
3. When was your last rate change?
4. When was your last LIMIT change?(either up or down)

How would one go about this with an account that was bought, then sold a couple of times. I've had my account for years but it was first Providian, them WAMU, now it's Chase. I have much of this info and when Chase bought my WAMU account which was in good standing and always had been they jacked my rate, then lowered my limit, ugh......I really hate Chase

[colsxjack]

So, do you just call and say that you are a customer in good standing and would like to have your interest rate reduced? Is it better to go in?

We have excellent credit. We have never had a late fee. We do not hold a large balance, but we do use our card and pay it off regularly. We do hold some balance sometimes so lower interest would be nice.

We have not made many changes to the card. We did increase the balance once when offered by the bank. We also have a line of credit with the same bank and have a great record with that too.