A Lower Credit Card Interest Rate

Ramsey County

Making $ense of Dollars and Cents

August 6, 2007

A high interest rate on your credit card or cards can add up to hundreds of dollars paid out on interest. Many consumers believe that the only interest rate available to them is the one the card issuer is offering. But believe it or not, the high-dollar, high-tech credit card industry is open to some old fashioned bargaining. To lower the interest rate on your credit card -

- Start with a phone call. A five-minute phone call to your credit card issuer could save you dollars in interest charges. "There's no incentive for them to lower your rate unless you call. The squeaky wheel gets the oil," says Brad Dakake, a consumer advocate with Massachusetts Public Interest Research Group. A national survey conducted by the U.S. Public Interest Research Group asked fifty consumers of all credit backgrounds to call credit card issuers and asked for lower rates. More than half, 56 percent, scored lower rates. The 28 consumers who landed lower rates saw the APRs on their cards drop from an average of 16 percent to 10.47 percent.

- Try a second phone call. If you are denied a rate reduction try again another day. You may reach a more cooperative customer service rep. You may be sent to an agent who specializes in keeping customers who are threatening to leave. Be persistent and make it clear that you'll close your account if your interest rate is not lowered. If the service representative you are speaking too is unable to change your rate, ask for a supervisor."

- Start shopping Not everyone who asks is going to get a lower interest rate. But long-time customers may have a better chance than newer customers. If your card company is unable to change your interest rate, start looking for a better deal. Several websites are available to help you compare interest rates. Try searching for “compare interest rates” or “transfer credit card balance” for more info.

Why are card issuers willing to cut interest rates? For the very reason that all those credit card offers are arriving in mailboxes across the country each and other day. Competition in the credit card industry is intense. If you're a good customer, a card company is going to want to hang on to you. It can cost a credit-card issuer hundreds of dollars in advertising to acquire a new customer so they want to keep your business. Use it to your advantage to save those interest dollars.

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524 4th Ave NE #5, 2nd Floor Ramsey County Courthouse
Devils Lake ND 58301
701-662-7027
email - ramsey@ndsuext.nodak.edu