Whether we like it or not, having a credit card is essential to a consumer like salt is to food. Many experts tell you that over usage is bad, but life just sucks without it.
But what about those interest rates? With credit easing a little bit and the economy strengthening, the once dependable method of lowering interest rates is working again. Here, we outline the steps to lower the interest rates on your credit cards (for those of you who don’t currently own 0% balance transfer credit cards) so you can substantially lower your monthly payments each and every month.
Step 1: Collect All Credit Card Offers That You Receive In The Mail
You should be getting at least one of these every couple of weeks in the mail. Many of these offers give you teaser rates for 0% for 6 months or 0% on your first balance transfer…or something similar.
Step 2: Choose One Of The Offers
After sorting through each offer, choose the one that you feel you can easily talk with the credit card representative about. Make sure that it is about something with a 0% rate. This is important because it is your “negotiation leverage.”
Step 3: Call Your Credit Card Company and Ask For A Decrease By Following This Script
Once you have decided on the offer you feel comfortable speaking with the customer service representative about over the phone, just give them a call. Ask to speak with a representative by saying “operator” over and over again (sometimes, repeated press “0″ also works) until the automated system understands you would like to speak to a physical person on the other end.
When you get the representative on the other end you can follow this script as your guide:
Operator: “Hello _____(Your name) what can I help you with today?”
You: “I am calling you to see what my current interest rate is.”
Operator: “Your interest rate that we have on file is ____%”
You: “That seems kind of high, I have an offer that I received in the mail today from ___________ (competitor) and I am thinking about switching my debt to that card to take advantage of the offer they have on the table…but wanted to call to see if I could get an interest rate decrease from you since I have been a loyal customer to ___________(Your companies card) for ______ years. Is there any way you could help me get a rate decrease?”
Operator: “Well let me see what I can do for you today Mr./Ms. ________ (Your Name)
You: “Thank you”
Operator: “Well you are in luck I am able to decrease your rate from _____% to _____% does that work with you?”
At this point you are jumping up and down because you just saved yourself thousands of dollars in fees and are well on your way to financial freedom.
*Special Notes + Scenarios*
If the representative doesn’t give you a rate decrease…
Ask to speak to their manager and start the script from the top.
If the manager still doesn’t help you…
Hang up and call up again, as you will eventually get a new customer service agent that would be more willing to help you.
When this process works for one of your cards, proceed to call the others and do the same thing!
Trust me on this that by going through this process once every 6 months, you can decrease your monthly payments on your cards significantly. Let me hear a “Yay” for total credit card domination and further financial freedom!
In the comments below, only if you feel comfortable, take some time to share with everyone your experience in doing this for your cards, and if you feel bold enough, share how much your rates decreased!