Why the Rate on Your Credit Card May Be High

Are you dismayed because the interest rate you are paying on your credit card is too high? This is an all too common scenario for many people. You may not realize it but lowering the rate that you pay on your credit card is actually much easier than you might think.

Why is your card card rate high?

If you have been bankrupt in the past, if your credit history has its share of blemishes and/or if you have a history of making late payments then this would explain why your credit card company is charging you a high interest rate. The higher a risk you present to your credit card provider the higher will be your rate. But your credit score and the manner in which you make your payments does not stand still and is constantly changing. As you show the credit card company how responsible you can be when it comes to the use of your card and making timely payments then they will get to know you better and will think of you as a trustworthy credit user. From there they will be more receptive to reducing the interest rate you pay.

Working out an arrangement that works well for both yourself and the credit card company is within the realm of possibility. You need to be persistent and you need to be respectful to whomever you speak to about lowering your rate. Remember that the number one priority for the credit card provider is to continue to make money from its customers and for that reason, it is highly unlikely that they will reduce your rate to zero. However, they want to keep you as a customer and do not want you to look for other lower interest rate credit cards that you can transfer your balance to so they will do their best to negotiate with you and will work with you to find a rate that you can both live with. Often times getting a lower rate is all in how you ask.

What Do You Need to Do to Lower Your Rate?

Here is what you need to do:

1. Take a close look at your recent credit card statements. Make sure you know what interest rate you are currently paying. Decide what rate you would like it to be lowered to and then look for the customer service number on your statement. You may be paying 18 percent and want to ask to be reduced to 12 percent. Getting through to your credit card company can be time consuming as it may involve a wait but if you get a lower rate then it will be worth it.

2. Once you get the chance to speak to a representative, state your case. Tell the individual that you would like to have your rate lowered. Be clear in making your request and be polite. To make your case stronger you might want to point out that you always make your payments on time (if you do that is!).

3. If the representative tells you that the company is not able to lower your rate at this time then it is within your rights to inquire as to why. Once you are given the reason ask the person what you can do to become eligible for a lower rate at a later date.  It can be discouraging to have your request declined but the important thing is to keep your chin up and try again in a couple of months. If you have had problems with late payments or skipped payments in the past then once you get back on the right track with making your payments then place another call to the company and try again. Be persistent but don’t make a nuisance of yourself at the same time.

4. Whether you are granted your rate drop or not continue to make your payments in full and in a timely fashion. The more you cooperate the more compliant your credit card provider is likely to be. If you consistently pay late then the company can decide to raise your rates, based upon that.

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