It seems that this is no isolated case. According to Pamela Yip, business columnist for the Dallas News "issuers, trying to cut risk and to get more money from consumers, are cutting credit lines and raising interest rates." If you want confirmation of this, just Google "credit card cut my credit limit" and look at how many recently posted results you get. The fact is, however, that these companies are still desperate for your money, and as much as they may try to exploit the agreements to their advantage, there are still things that you can do to encourage them to be kind to you and your budgeting. Negotiating a lower credit card interest rate is one of them.

The following methods for how to get a lower credit card interest rate are usually open to people with a reasonable credit rating. Those with a lower rating are less attractive to credit card companies, but should also try to use these methods. If you are consistently declined, find out what your credit rating is. You may need to focus on reducing your credit card debt first, thereby improving your credit rating. As this happens, your credibility and value as a customer will notably increase and you can again try to negotiate a lower credit card interest rate.

Negotiating a Lower Credit Card Interest Rate Requires Preparation

The process of trying to get a lower credit card interest rate will require an initial look at your payment history, a bit of perseverance and polite, but firm demands.

Your objective will be different than the goals of your credit card issuer, so they will do their best to avoid giving you what you want.

Being a good client will be your strongest asset, and to successfully negotiate your credit card interest rates, you should blow your own trumpet accordingly.

Knowing how to lower credit card interest starts with understanding your history. If you have met your payments on time you will stand a much better chance of success. Make some notes in bullet point form about how long you have been with your credit card company, how many times you have been late, and when it last happened.

Having concrete figures will help you to prepare your argument if you have to prove that you "are worth" offering better interest conditions to, even if you have been late paying or even missed the odd payment.

The next step to getting a lower credit card interest rate is to consider what alternatives you have outside your present credit card company. Even if you don't want to change to another company, it will be easier to negotiate when you have options that you can share with them.  Look at sites such like CreditCards, to find out what the average interest rates available to you might be, to see if rival credit card companies offer lower credit interest rates, and to look at whether your credit card issuer is offering any alternative cards or deals that you could use to your advantage.

Making your credit card company aware of the fact that you are a good customer that they should try to keep will go a long way toward getting a lower credit card interest rate.

Talking to Your Credit Card Company

Once you have some alternative offers, the next step about how to negotiate with credit card companies will be able to mention them when speaking to your credit card company. When you call, avoid the word "bankruptcy" at all costs because you want them to see you as a profitable and reliable long-term customer, not a possible risk. Tell the person that you speak to that you are happy with the company, but that you have to find ways to save some money and you want to know "how they can help you with this."

This is the moment when preparation and perseverance will start to come into play to help reach your goal of getting a lower credit card interest rate.

Armed with your alternative offers, you may be lucky and get a positive response right away, but if they refuse to change your interest rate, just ask to be put through to a supervisor. Supervisors often have more power to negotiate and can be more open to your proposals, particularly if they feel that you may take your business elsewhere.

Be prepared to wait on the line for some time, supervisors are often busier than others because customers such as yourself know that they can get a better deal when dealing with them. Remember to quote rival offers if necessary, to demonstrate that you have other alternatives to help you get a lower credit card interest rate.

Persevering

Reducing credit card interest rates can be difficult at times, and even at this stage you may get a refusal, but don't take it as a final response; just say goodbye, put the phone down and call back later.

The reason for this is that when you call back, you will probably get a different person on the phone and they may be more open to negotiating with you. Do not stop until you have tried to do this several times. The more people you speak to the more chance that you will have of finding a sympathetic ear who will agree to give you a lower credit card interest rate.

Not all companies will be willing to lower your interest rates, store cards are an example. If your credit card won't budge it is time to look at what other offers you have found during your research. Look at the possibilities carefully, consider how much it will cost you to transfer the debt, the length of time of the introductory interest rates, and the standard rates afterward. If after doing your calculations, you may find that you can save money by moving your debt to a different company, it will be time to seriously consider transferring your balance to a new account.  Sometimes that is the best way to lower your credit card interest rate.

The Credit Card Shuffle

If you have several credit cards you can take a different approach, one that you should try before finding a new credit card issuer. Investigate what offers are available to you within your present companies. You may find that you can save a large amount of money by opting for a balance transfer to one of your cards at a cheap rate.

This only requires you to call your credit card company and ask if you can transfer your debt to them at a cheaper rate of interest and if so, to move as much as you can into those cards. Before making the balance transfer into the cheaper account, try to create as much space in it as possible because the cheaper interest rate will be applied to the transferred debt. For a more detailed description of the process, you can view this video by MoneySavingExpert.

The Summary of Getting a Lower Credit Card Interest Rate

Whichever method you choose, remember the basics of how to lower the interest rates on credit cards: preparation, perseverance, and a pleasant telephone manner. Don't threaten to leave your credit card company unless you are not given any other option, but make it obvious that you mean business. If you stay with them and get what you want, both sides will benefit, so just make your credit card company see that, and be civil but firm when you speak to them.

That is how you can get lower credit card interest rates.

What Do You Think?

Have you had any luck getting a lower interest rate on your credit cards?

Do you have any other tips on how to lower your credit card interest rate?