A common misconception is that once you’ve been approved, your credit card APR is fixed in stone. Nothing could be further from the truth– especially if you have good credit and a long-standing account with no history of late payments or defaults. But you won’t get a better deal if you don’t make an effort. No one is going to call you out of the blue to offer a lower APR…

The credit card industry continues to change. The combination of high minimum payments and high interest rates are a financial burden for most consumers. With the potential for higher default rates and fierce competition among credit card issuers, the landscape is ideal for consumers to be given a break on interest. The truth is in the credit card industry there is never a truly ‘fixed rate’.

Consumers with credit scores of 720 or above should never settle with an APR higher than 10%. In fact, with a great score, lenders will be willing to fight to keep you as a customer.

Here are several tips to help you lower your interest rates.

1. The easiest way to get a lower rate is to just call and ask. If you’ve made your payments on time, carried a balance and have a long-standing account, lenders will often want to keep you as a customer and grant your request for a lower rate. Mentioning a better offer available from one of their competitors often works.
2. Even if you’re denied your request on your first call, don’t be dismayed. Call back in a few hours when you’ll be speaking to a different representative. These decisions often depend on the interpretive actions of the agent. A different agent may mean a better answer. If all else fails, ask to speak to a manager and give them your sales pitch.
3. If you have a decent credit score, you may secure a new credit card that comes with a 0% balance transfer offer. If you want to avoid opening a new account, call another open credit card lender and ask for a transfer deal. Your existing card companies often will offer lower promotional rates for periodic periods of time.
4. If you see a low interest rate offer online, or in the mail, go for it. Either apply for the offer or use it as leverage against your current lender by letting them know you’re prepared to switch.

Posted in Card Advice

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