How To Get Lower Interest Rates On Credit Cards

Credit card interest can add up quickly, especially when rates are high. If you carry a balance, one way to reduce your costs is to ask your credit card issuer for a lower interest rate.

There’s no guarantee your issuer will approve the request, but it may be willing to work with you — especially if you have a history of on-time payments, a strong credit score, or competing card offers.

Here’s how to ask for a lower credit card interest rate and improve your chances of getting approved.

What To Do Before Asking For A Lower Interest Rate On Your Credit Cards

Before asking your credit card issuer for a lower interest rate, take a few steps to strengthen your case.

Compare Other Credit Card Offers

Look for credit cards with similar rewards, fees, and eligibility requirements. If you find a comparable card with a lower APR, mention it when you contact your issuer. Your card issuer may be more willing to negotiate if it knows you’re considering another option.

Improve Your Credit First

A stronger credit score may improve your chances of getting approved for a lower rate. If your credit needs work, consider paying bills on time, reducing balances, and limiting new credit applications before asking for a rate reduction.

Start With Your Oldest Credit Card

If you have a long history of on-time payments with one card issuer, start there. A strong account history may make the issuer more willing to work with you.

Pay Down Your Balance

If possible, pay down or pay off the balance on the card before asking for a lower rate. A lower balance can show the issuer that you manage credit responsibly and may improve your chances of approval.

How To Ask Your Credit Card Issuer For A Lower APR

When you contact your credit card issuer, be direct and explain why you qualify for a lower interest rate. There’s no guarantee your request will be approved, and some issuers may not negotiate APRs, but it’s still worth asking.

When making your request, mention:

• Your good or excellent credit score
• Your history of on-time payments
• Any lower APR offers from comparable credit cards
• Whether you’re considering a balance transfer if your rate stays the same

What To Do If Your Credit Card Issuer Denies Your Rate Reduction Request

If your credit card issuer denies your request for a lower interest rate, you still have a few options.

Ask For A Temporary Rate Reduction

If the issuer won’t approve a permanent APR reduction, ask whether it offers a temporary rate reduction. This may be more likely if you’re dealing with a short-term financial hardship or trying to pay down a balance.

Try Again In A Few Months

If your request is denied, consider trying again in three to six months. In the meantime, focus on making on-time payments, lowering your balance, and improving your credit score.

Contact Your Other Credit Card Issuers

You can also ask your other credit card issuers for lower rates. Your longest-held card may be a good place to start, but any issuer may be willing to review your account if you have a strong payment history.

Consider A Balance Transfer Card

If your issuer won’t lower your interest rate, a balance transfer credit card may help you save on interest. These cards often offer an introductory 0% APR period on transferred balances, giving you time to pay down debt without adding more interest.

Before applying, check the terms carefully. Intro 0% APR periods expire, and regular APR will apply after the promotional period ends. Some cards also charge balance transfer fees, and the 0% APR offer may apply only to balance transfers, not new purchases.

How To Avoid Paying Credit Card Interest

The best way to avoid credit card interest is to pay your statement balance in full each month.

Most credit cards offer a grace period between the end of your billing cycle and your payment due date. If you pay your full statement balance before the due date, you can usually avoid interest on new purchases.

However, this generally only applies if you’re not already carrying a balance. If you do carry a balance, interest may continue to accrue until the balance is paid off.