How to Reduce Credit Card Interest & Lower Payment

Reducing your credit card interest rate helps lower your payment. This benefits people who want to get out of debt quicker, and those who cannot afford their current minimum payments. Some people are unaware of the fact that credit card rates are negotiable. Credit card companies charge higher rates to get the most money from consumers, but there are tactics to help bring down your rate.

• 1

  Assess your payment history. Paying on time each month is a prerequisite for a reduced interest rate on your credit card. If you've experienced payment problems in the past, begin making on-time payments and request a better rate after you've improved your history.

• 2

  Ask for a specific rate. Check your other credit card statements, and if one of your companies offers a rate around eight percent or lower, call your other credit card companies and ask them to match the rate.

• 3

  Bring other offers to their attention. Pre-approved and balance transfer credit cards often advertise low credit card rates for those eligible. If given the opportunity to take advantage of a low balance transfer, ask your existing credit card company to lower your rate or risk losing your business. They may comply to keep you with the company.

• 4

  Talk with a supervisor to reach an agreement. Ask the customer service representative to transfer you to a supervisor if you are unable to reach an agreement with the representative. Ask about any options available to you, such as a temporary rate reduction, where the company agrees to lower your rate for a predetermined number of months.

• 5

  Check back in a few months. Perhaps you do not qualify for a lower rate due to high debts, late payments or a short credit history. Make wise credit decisions, maintain a good account standing with the creditor and repeat your request in a few months.