How to get a Lower Interest Rate on your Credit Card

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Using a credit card to buy items on credit is not very wise, as it is the most expensive form of credit available. Credit Card Companies charge interest rates way above base rates. Often it is a lot cheaper to get a bank loan rather than use a credit card, however, if you must use a credit card in this way, it is a good idea to strike out for the lowest interest rate available.

You Will Need

  1. A full list of all your credit cards and the liabilities you have incurred.
  2. A notepad and pen.
  3. Internet access.
  4. A box file in which you place all the offers you receive.
  5. A telephone.
  6. Plenty of patience

Step 1

Collect solicitations and mail shots of promotional offers from Credit Card Companies offering you a low interest rate if you transfer your outstanding credit card debt to them.

Step 2

Read the small print carefully. These offers are usually for a limited time only.

Step 3

Select one or two of the new offers and apply.

Step 4

You will hear back from them generally within 10 days. If you don’t hear, call them up.

Step 5

If they accept you, off you go, you now have a new line of credit at reduced interest for the next 6 months or so.

Step 6

If they turn you down they have to give their reasons for declining your application in writing. They will also be required to provide you with your credit record. Companies hate doing this so you get some recompense for their refusal.

Step 7

Now file away all new offers so you can transfer your credit card debt to another company before you have to start paying the full interest rate. Done cleverly you can probably keep this up for some time. Some people have used this technique to write off all credit card debt.

Step 8

Credit Card Companies love people with a good credit record who make their payments regularly and without fail. If you are one of these, you can use your positive history to negotiate a better rate of interest. Simply ring the Company and speak to a customer service agent at the phone number on the back of your credit card. Make your request and if you are turned down insist on taking the matter up with a supervisor. If you are persistent enough you will probably secure what you want.

Step 9

If however, you have just transferred your liabilities over to a new Credit Card Company a long standing record of prompt payment is likely to wash less well. Nonetheless it’s worth a try. If they turn you down you can always contact your original Credit Card provider. Tell them you are dissatisfied with your new arrangement and would like to bring your account back to them, providing they offer you a lower interest rate than before. They have probably lost a number of customers due to the poaching tactics of the other company or companies and so they will be delighted to take you back at a preferential interest rate. If not, you can always stay where you are until something better comes along!

Tip

You will probably have to do a spell of negotiating with customer service agents. It always pays to keep your cool and remain polite.

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