How to Negotiate your Way to a Lower Rate
You negotiated a deal on your new vehicle, you negotiated your television purchase, and you even negotiated the price of your home. But what about your credit card rate?
The best thing about today’s credit card industry is that they are now competing for new customers. In fact, a consumer with a strong credit score has his or her pick when it comes to credit card rates. In other words, don’t go for the first offer that comes your way. You can – and should – negotiate your way to a lower rate.
Make a Phone Call
If you receive a credit card offer that looks enticing, but the rate could be lower, don’t hesitate to call the credit card company and ask them if they can do better. If the customer service representative doesn’t want to entertain a lower rate, ask to talk to his or her supervisor.
When calling the credit card company, simply say, “I really like the features of this new card, but I have also received other credit offers with lower rates. What can you do to beat these offers?” Simply by threatening to take your business elsewhere you can bet a credit card company will make you a better offer.
The U.S. Public Interest Research Group found that, in the last several years, more than half of the customers who requested a lower rate got one. And the average consumer saw a decrease in their APR from 16 to 10.4 percent.
A Strong Credit Score Remains King
It is important to understand, however, that the only way you can expect to negotiate a lower rate is if you have the credit history to back up your request. Credit card companies are more than willing to negotiate rates and snag a great customer, provided the customer has excellent credit and a strong history with the credit card company.
In short, a lower interest rate can save you hundreds of dollars in unnecessary finance charges each year, so you should be negotiating every point in interest so you can be sure you are holding the best card with the best rate.
Related posts:
(No Ratings Yet)
Loading ...
