How To Get Lower Interest Rates On Credit Cards

With rising interest rates impacting consumers everywhere, credit card users may be wondering how to get lower interest rates on credit cards. What many cardholders may not realize is this: you can get a lower credit card interest rate by simply asking your credit card issuer for a rate decrease.

Of course, your card issuer can decline your request for an interest rate reduction, but there is a chance they will work with you, so our goal here is to ensure you have the best possible chance of getting a lower interest rate when you request one.

Read on for the details on how to get a lower interest rate on your credit cards.

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

Before asking your credit card issuer for an interest rate cut, you’ll want to prepare beforehand so you can make the strongest possible case for yourself. Here’s what you should do before you contact your credit card company.

Look At Competing Credit Card Offers

Check the internet for credit cards that are similar to yours in terms of their spending rewards and eligibility requirements. If you find that any of these cards offer more favorable APRs than your own, mention this when you contact your card issuer. When the company hears that you might transfer your balance to this other card that offers similar benefits, it may be more receptive to your case.

Build Up Your Credit First

One simple, unavoidable fact is that the better your credit score, the more likely you’ll succeed if you ask for a lower interest rate. If your credit health is sub-optimal, consider taking some time to improve your credit score before asking your card issuer for a rate cut.

To gain a better understanding of the factors that go into determining your credit score and the methods you can employ to improve it, read our credit score explainer.

Focus On The Credit Cards You’ve Had The Longest

When you have a long history of making timely repayments, you’ll likely get a more receptive audience with your credit card issuer. That’s why it’s a good idea to start your quest for lower interest rates with the credit card you’ve had the longest.

Pay Off The Balance Of The Credit Card (Or Cards) In Question First

As you can see, card issuers appreciate customers exhibiting diligence with their credit card use. Accordingly, if you’ve paid off your balance when you ask for a rate decrease, you’ll have a better chance of success.

How To Lower The APR On Your Credit Cards By Contacting Your Credit Card Issuer

Now that we’ve gone over what you can do to prepare for your meeting with your credit card company, let’s discuss the arguments you can make to support your case for lower interest rates.

Of course, no matter the strength of your case, there’s no guarantee that your card issuer will grant your request. In fact, some card issuers don’t accept these kinds of requests at all. Nonetheless, it’s good to put your best foot forward. That’s why we’ve put together this helpful list of the points you can make when you contact your credit card company.

• Mention if you have good/excellent credit
• Mention if you have a perfect record of making on-time payments
• Ask the company to match the lower rates contained in competing credit card offers, if such offers exist
• Suggest that you might transfer your balance to another card if you don’t get a lower rate

What To Do If You Are Denied An Interest Rate Decrease By Your Credit Card Issuer

As we said, there’s no guarantee that your credit card issuer will agree to your request for lower interest rates, no matter the strength of your arguments. If you find your card company to be unreceptive to your request, here’s what you might consider doing next.

Ask For A Temporary Rate Reduction Instead

If your credit card issuer won’t agree to a permanent rate reduction, you might be able to get a temporary rate cut instead. Of course, you’ll have to ask for it.

Try Again In 3-6 Months

If, at first, you don’t succeed, try, try again! Another 3-6 months of responsible card use might sway your credit card issuer towards your position and get you an interest rate decrease. It can’t hurt to try!

Contact Your Other Credit Card Issuers & Ask For Interest Rate Decreases

The same process by which you can request a rate decrease for your longest-held card can be applied to every other credit card you hold. You may not have the same chance of success you’ll have with your longest-held card, but again, they won’t say yes if you don’t ask.

Another Option: Transfer Your Balance To A Balance Transfer Card With An Intro 0% APR Period

If you can’t get a lower interest rate on your current credit card and you’re looking for an alternative solution to your high-interest payments, consider applying for a balance transfer credit card with an introductory 0% APR period. As we explain in our guide to credit card balance transfers, such balance transfers are a good way to lower your overall interest burden, consolidate your debt, and lower your credit utilization ratio.

If you go this route, just remember this your introductory 0% APR will expire at some point (typically 6 to 18 months later), so try to pay off your balance before that time comes. Also, balance transfer credit cards may not offer a concurrent intro 0% APR period for purchases, so read the fine print in the terms and conditions before assuming that the 0% APR period applies to purchases as well as balance transfers.

How To Pay No Interest On Your Credit Card

There is one 100% foolproof way to ensure you never pay any credit card interest payments at all: don’t carry a balance over to your next billing cycle.

Pay Off Your Card’s Balance In Full Each Month

One thing to keep in mind when you’re trying to avoid carrying a monthly balance is the fact that most credit card issuers offer an interest grace period of at least 21 days after the end of a billing cycle. Pay off your charges on a monthly basis before this grace period ends, and you’ll avoid paying interest on these charges.

FAQs: How To Get Lower Interest Rates On Credit Cards