FISH IN A BUCKET

In today's lending market, all but the worst credit risks should have no problem whatsoever receiving a lower interest rate. There are several options available.

SET THE MOOD

First, call up your credit card company. Be sure to set aside about an hour of peaceful time, where you can do something relaxing and enjoyable while on hold. There is no use being annoyed by hold times, plan ahead and the experience will be much more pleasant. When you finally get through to someone (I normally start hitting 0 randomly and soon the phone system gets me to a real person), say the following.

THE FIRST STAB

"I am thinking about moving my balance with you to another company. If you lower my interest rate to xx%, I will consider staying with your company. Can you do that?"

If the answer is yes, and you like the answer, ask for it in writing. I would probably take an email.

THE SECOND TRY

If the answer is no, ask specifically to be transferred to their "retention group". This is the team that most companies send people to before they cancel their account. The retention group is usually much more empowered than normal customer service reps to change things like APR and other things to keep the customers.

THE LAST DITCH EFFORT

If none of these tactics yield results, tell them you are going to think about it some more. Go see what you can find in terms of balance transfer offers.

A REAL PLAN

Finally, I recommend that you remove credit cards as a way of life altogether. Going through this process should be a wakeup call to you. Instead of trying to throw less of your hard-earned money away by playing the "lowest interest rate" game, stop borrowing money and save up so you can pay cash. That is the lowest APR of all!

Learn more about this author, Draven.
Click here to send author comments or questions.

---

Add your voice

Know something about Credit cards: How to ask for and get a lower rate on your high interest credit card?
We want to hear your view. Write now!