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In order to prevent a recession, the Fed has reduced the prime interest rate several times in the last few months. The credit card companies don't pass these lower rates on to their credit card holders. However, now is a perfect time to ask to have your rate lowered.

Credit card interest rates can rise for many reasons. An introductory rate can expire. The prime interest rate can rise. Or you might have run into a situation that forced you to make a payment late or skip one all together. In today's economy, this is guaranteed to raise your interest rate.

Whatever the reason your rates have risen, it makes good financial sense to ask your card company for a lower rate. This can be as easy as making a simple phone call.

It will help your situation if you are current with your payments. If you are delinquent, the company has little incentive to reduce your interest rate.

Have you asked for a lower rate recently? If they granted you a lower rate last month, you probably won't get an interest reduction this month. If they refused to lower your rates, you can ask again in a few months.

What type of credit card do you have? If you have a card that offers rewards, you probably won't be able to have your rate lowered much.

Call the credit card company. Be polite and business-like. Tell them that you've been a customer for some time. Don't lie. They have your records, so they know how long you've been with them.

If you've received an offer from a competitor offering you a new card and/or a good deal on balance transfers, mention that. Let them know that your comfortable with doing business with them and don't want to change unless you have to in order to save money.

If you don't carry a balance on your card, tell them you are thinking of making a purchase and making the payments over time. This will benefit them and increase the chance of having your request granted.

If your request is refused, ask to speak to a supervisor or to the retention department. They may have more authority to grant your request than the first person who answers the phone.

Don't threaten to close your account, unless you really mean it. They may call your bluff.

If they still refuse to reduce your interest rate, you can always call them again next month. You may get a different person or their policies may have changed.

You might be nervous about calling. Just remember that it's your money. You really have nothing to lose. They won't raise the rate because you asked to have it lowered.

Take a deep breath. Pick up the phone. Call and ask for a lower credit card rate. It never hurts to ask.

Learn more about this author, Lynn Jordan.
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