Reversing the High Interest Rate for Good Customers

It may have been quite a big surprise for many credit card account holders to discover how devastating one late payment could actually be to their account and their credit rating. In some cases, consumers who made a late payment or missed a payment completely were hit with an interest rate increase of up to 30% in some cases. As the economy continues to remain unsteady, credit card customers are also at risk for having their credit limits slashed to limit the risk of the companies behind the cards. In both cases, many consumers are left struggling to keep their credit accounts paid up to date, with the ongoing goal of paying off the balances in full.
 

But for customers who have remained on the good side of credit, for instance those who have a solid history of paying their bill on time, there may be a way to eliminate the higher interest rates on today’s credit cards. The process is simple really – just ask.
 

It’s true that many people do not think it is possible to actually request a lower rate but it can happen, provided you qualify as a good customer who does the following:
 

• You make on time payments regularly and keep your account in good standing.
  
• You do not go over the limit on your credit card.
  
• You pay more than the minimum monthly payment required on your account.
  
• Your credit score is rated as good or higher.
  
• You have not asked for a change in your interest rate in recent months.
  

If you can prove the aforementioned factors apply to your credit card account, you should proceed by contacting a customer service representative and state your case for a reduction in the amount of interest you are charged each month on your credit card.
 

The Worst Case Scenario
Like with many things, the credit card company can turn you down. But truthfully, the worse thing that can happen is they tell you no. It does not hurt your account or your credit score to inquire about the reduction. If you are not satisfied with their decision, it may behoove you to take it a step further and mention you will be transferring your entire balance to a lower interest card. As a good customer for the credit card company, they may do what it takes to keep them in your good graces. Especially now, with all of the disruption and financial troubles many credit card companies are experiencing, the company may want to hang on to as many good customers as possible. If, even after your disclosure is made, the credit card company still decides to turn down your request, you can certainly try again in the near future. Continue to improve on making your on-time, monthly payments and even increase the amount of the payment you send in against your balance for the next 6 months then you can once again request a reduction. The credit card company will benefit from retaining its loyal customers while you, as the card holder, can enjoy a lower interest rate that may be unattainable elsewhere.
 

Follow Through With Your Intentions
If you are not satisfied with the card company’s denial, stick with your promise to seek out a new credit card that will allow you to transfer your balance to a card with a lower interest rate. Keep in mind that many cards will offer a limited time, introductory rate that will expire after a certain time. Provided you have a clear understanding of the new offers from competitive companies, you may be able to secure yourself a better deal with a new card. With the convenience of many online resources, you can now essentially perform a side-by-side comparison of all the latest and greatest deals available to consumers with great credit, who know how to use and pay off their credit cards responsibly.

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This entry was posted on Thursday, November 20th, 2008 at 6:53 am and is filed under Debt & Consolidation, Tips & Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.