Comments on: A Step-by-Step Guide to Getting Your Credit Card Interest Rates Reduced

By: Amanda

Amanda — Mon, 31 Aug 2009 20:04:04 +0000

After reading all these comments, and some specific to BoA on other websites, I had mixed feelings about calling Bank of America and asking for a lower credit card interest rate. However, I sucked it up, wrote out a script, and called. It took me less than 5 minutes to get my rate lowered from 27% to 12%, and I didn’t even have to bargain or threaten to leave BoA. I just called and asked to speak with someone who could help me lower my interest rate, if possible (I was in the default zone of interest rates at 27% b/c my payment last month posted 1 day late). I was transferred, spoke to a very nice guy, and he immediately said, “yeah, I think we can lower this to 12.24%, no problem.”

So while I know there are risks nowadays to calling, I still think it’s worth a shot. Good luck to everyone!

By: Mike

Mike — Sun, 17 May 2009 11:55:33 +0000

The biggest problem, is the economy. Citi jacked my interest rate from 13 to 29 because my payment was1 day late. No talking to anyone helped. Also if you are forced to talk to India, Brazil, The Philippines and other foreign based csr. You have no chance, or they will make matters once for you. Try to call Macy’s credit services. What ever problem you have they will make it worst.

By: Renee

Renee — Fri, 20 Mar 2009 15:03:45 +0000

I have several high interest cards with high balances totaling 10k. I recently made a few calls to Capital One, CitiBank, HSBC, and Chase. Try a script that includes the word, “Bankruptcy”. Tell them you are in the last stage of your bankruptcy counseling (legally mandated now) and if they cannot lower your interest rate drastically, then you’s like to get the department that will be handling your discharge claim. Especially if you are not in a position to threaten to transfer the balance to another card or if you have a low credit score. I promise you they become helpful very quickly. (Chase was the only one that wasn’t very helpful-granted I had the highest balance with them, I will try in a couple months when my other balances go down more.)

By: Jake

Jake — Wed, 18 Mar 2009 18:28:31 +0000

A few years back, I was working with a stock trading coach and one of the benefits he offered was coaching me through this. We both got on the phone and called US Bank, Bank of America, Chase, and Washington Mutual.

He said “Hi, my name is and I am working with my client to improve his credit. I wanted to know if you have any 0% promotional rates available at this time.”

Bank of America, US Bank, and Chase all gave me 0% for one year. Washington Mutual said “uh, we don’t do that for our customers.”

I promptly paid off Washington Mutual and never used that card again. After two years they reduced my credit line to $0. I couldn’t have cared less.

By: dem

dem — Mon, 16 Mar 2009 20:43:37 +0000

Just want to thank you for motivating me to take action… At the beginning of the year, I review our debt and started paying down/off the smaller ones. I’ve got one big one left which has a 24.99% rate. I just got off the phone. I spent 15 minutes with a very nice woman who was just doing her job, and like you said, she said, ‘no’… I waited a few minutes for her to get her supervisor and when all was said and done, they reduced my rate 4%. Based on my current balance, I save about $52 next month. Not bad for 31 minutes worth of work. Calculate what I save over the next 12 months and I figure I just ‘made’ a few hundred dollars per hour. Thanks again…

By: Ginger

Ginger — Fri, 13 Mar 2009 18:59:19 +0000

I NEVER give them a rate I want. I just call them and ask them to decrease it. On my higher interest cards I would tell them that but that was it. And almost always, I was able to get the interest reduced, btw this was never with a balance on the cards.

By: Melanie J

Melanie J — Fri, 13 Mar 2009 12:59:48 +0000

kind of related…I have a credit card I keep with no balance just for emergencies, but haven’t used it in 6 months. Just checked it to make sure noone was messing with it and the interest rate was 299.67% I called because, clearly this was a mistake. Oh no. Turns out, since I made no payments in 6 months (even though there’s no balance) they kept jacking the rate. I cancelled the card immediately. Can you imagine if I’d not been paying on a balance because of a financial emergency? Has this happened to anyone else? Ps, avoid Bank of America…

By: DDFD at DivorcedDadFrugalDad

DDFD at DivorcedDadFrugalDad — Fri, 13 Mar 2009 06:49:09 +0000

Solid post!

I highly recommend scripting your phone calls– write down the bullet points you need to hit so you don’t lose your composure.

By: Matt

Matt — Thu, 12 Mar 2009 14:38:59 +0000

I used this system to get my Discover card down from 25% to 13%, sweet. I just used Discover’s online secure message system and a day later they lowered my interest rate. No phone calls, no hassle. Love it.

By: Sam

Sam — Thu, 12 Mar 2009 05:27:15 +0000

I called Citi and lowered my interest rate from 18.99 to 12.something.
Not as much as some, but I wasn’t carrying a balance on my card.

By: Lindsay

Lindsay — Wed, 11 Mar 2009 20:53:25 +0000

I had my husband do this for his cards today. We have been debt snowballing, and hadn’t seen a decrease in the interest rate.

Using your script:

Citi lowered his 29% rate to 8.9%
Amex lowered his 27% rate to 13%

I’d say that’s pretty good! Thanks for giving me something that I could just email him and say, “Can you do this while you’re off today?” :)

By: Allen S.

Allen S. — Wed, 11 Mar 2009 01:28:17 +0000

I recently received a letter increasing my credit card rate to 17.9 percent. I carry no balance so I canceled the card. It is absurd when bank interest rates are at an all time low and the only ones not laying people off are the credit card companies and then squeezing the people who can least afford it. Sorry it just made me angry.

By: Diane

Diane — Tue, 10 Mar 2009 22:09:09 +0000

Cathy G. – If you get a notice to “reject changes to your interest rate” by closing the account, you will still be able to pay the balance off monthly. You have to decide whether you need the card enough to keep it open.

It will have a negative impact on your credit score to close an older account (long credit history) & also if closing an account will mean you have much less credit available (compared to what is used).

Things have changed, and it is not as easy to get credit card companies to work with you as it was in the past. I was fortunate to pay down my debt before the credit crunch, and I have not seen much negative impact on my interest rates.

In the past I have had success with requesting reduced interest rates & removal of annual fees, but is more difficult now. It is still worth asking though…

Most people I know who carry large balances have had their interest rates increased by several cards, with no recourse except to close the account & pay it off over time at the old rate. And the low interest balance transfer offers seem to have evaporated for the most part.

READ all notices from your credit card companies carefully so you don’t miss something important!

And I would stop charging anything that cannot be paid for when the bill arrives.

By: Helix

Helix — Tue, 10 Mar 2009 20:36:42 +0000

If your credit score is good you could try Lending Club. I’ve seen 8-9% rates on loans (but again, you must have good credit), and they’re fixed payments for three years. I believe you can pay in full after six months, but not sooner. I’ve never borrowed through it but I have done some lending there; the web site is quite user friendly (from a lender’s perspective, at any rate).

By: Erin

Erin — Tue, 10 Mar 2009 18:34:57 +0000

I’m one of those folks who doesn’t tend to carry a balance. But, while unemployed a few months ago, I decided to cover my bases and see if I could get lower rates _before_ I started carrying balances. (I never did have to, by the way.) And I had no problem getting two different credit cards to lower my rate even though I didn’t have an active balance. So, yeah… I don’t think there’s any reason not to call and ask, even if you don’t “have leverage”.

By the way… I like the ‘fixed loan to pay off credit’ option. I have some friends I’ve been trying to sell on that idea.

By: Laura

Laura — Tue, 10 Mar 2009 18:28:22 +0000

Hello Trent, I’m a frequent reader, first time commentor. Today I prepped myself for battle with my credit company – I hold a high balance at 18.99%. I just called my credit company and followed your guidelines, and they were able to IMMEDIATELY reduce my interest rate to 11.24%. Thank you so much for your tips, they have always been beneficial to me. I’m in a great mood now!

By: JBL

JBL — Tue, 10 Mar 2009 17:06:39 +0000

Trent,

If you never carry a monthly balance, why would it matter what the rate is? My wife and I always pay off the bill in full every month because we never purchase anything that we can’t pay cash for. The card is just a way to get freebies.

So I am wondering: does a high interest rate affect your credit, or some other semi-opaque financial matter? If it does, I’ll use the script. If it doesn’t, why bother?

Thanks.

By: CathyG

CathyG — Tue, 10 Mar 2009 15:20:51 +0000

And to the folks that are getting the message to close the card at the old rate – maybe that is a good option. Do they let you continue to pay monthly in that case or do you have to pay off the whole balance all at once? If you can keep paying at the old rate with a balance that won’t keep increasing, that could be one of the items in your debt snowball with a target for paying it off.

I think step 4 of this plan was not emphasized enough – along with ‘learning to live below your means’, you need to STOP adding new charges while you focus on paying it down.

By: Tim

Tim — Tue, 10 Mar 2009 15:12:33 +0000

Actually, the worst thing that can happen is that they lower your credit limit to just above what you currently owe on the card.

By: MK

MK — Tue, 10 Mar 2009 13:21:17 +0000

Like others have said above, considering the current economy, this course of action may not work out so well for some, but really people, it’s worth a shot! what is the worst that the credit card company can say to you? “No”?!? and where does that yet you? right where you were before you made the call. But what if they say “yes”? Then you have something positive come out of that single phone call. And for those with multiple balances on different cards. If one card says no, don’t quit there. Call each and every single one of your cards. Just because one company says no, doen’t mean the other ones will follow suit!