It’s not impossible, however, to bring those numbers back under control and work your way towards greater financial independence. One of the best ways to achieve this is by contacting your credit card company and requesting they give you a lower interest rate. Cardholders rarely take this step for fear of rejection or the possibility they might have to negotiate their rate down. At the absolute worst, your card company might say no – but what if they don’t? Here is how to lower your credit card interest rate and take back control of your debt. [This article was first published on The Simple Dollar in 2020. It was updated in March 2022.] If your credit is on the upswing, it’s an excellent bargaining chip, so sell that point when you call your card issuer. However, if your credit score needs fixing, you might want to delay your call until the numbers are more solid. Look at where you can achieve quick wins. Pay off a smaller balance or pay a sizable portion of a larger debt. Both will push your credit score upwards. Also: Capital One Platinum Card review: Build positive credit Always make it a point to make all payments on time because even a few missteps can hurt your credit rating. If you do have an excellent track record of on-time payments, use it as a point in your favor. Did you recently pay off a vehicle, vastly lower some student debt or make a move to a less expensive house or apartment? Perhaps you recently received a raise? All of the previous scenarios have one thing in common – they lower your debt to income ratio, which makes you less of a risk to lenders, including credit card companies. As with your credit score, monitor your debt to income ratio to ensure you maintain a healthy balance between major monthly obligations and your income. A debt to income ratio of 36% or less is considered good; 28% or less is ideal. The card company will verify everything you tell them. It helps to put a story behind those numbers to prove your commitment to fiscal responsibility. The company will want you to convince them why they should provide you with a lower rate, so be prepared and be honest. State facts and don’t embellish. Sooner or later, the card company will know if you’re worth the lower rate or not. Also: The best business credit cards with 0% APR Credit card issuers will avoid losing business with you if you make a great case. Much like big box retail stores and their price matching tactics, a card issuer isn’t going to lose a customer over what amounts to a nominal fee. State your case in the order expressed above and mention the other offers you are entertaining. If the initial request is unsuccessful, don’t hesitate to ask if there are steps you could take to improve your chances for a lower rate. Make good on your promise of switching issuers by exploring other offers. Several cards have a 0% interest introductory offer on balance transfers for 12, 15 or even 18 months. Note that some of these cards do charge balance transfer fees, so it’s important to research which ones best fit your current financial situation.
