How To Negotiate Lowering Your Credit Card Rate

Negotiating a lower interest rate for your credit card can be intimidating. However, it is a critical step in improving your business’s overall financial health. After all, paying high interest rates on large balances can be costly. For example, the fees can exceed 20% depending on the card and your credit score.

This is why it is important to get your facts together and make that phone call. Finance professionals looking for some relief should read on to learn how to negotiate lowering your credit card rate.

Create A Debt Reduction Strategy

Before you can start bargaining with the credit card company, create a debt reduction strategy. To do so, you need to examine your finances in depth.

For instance, numbers like outstanding balances, current interest rates, and credit scores are key. This way, you will have the current information handy when talking to a representative. These metrics give you an opportunity to make a plan for paying off your debt. As your debt decreases, you’ll have more leverage to lower your rate. Certainly, having a debt reduction strategy will make it easier to negotiate a new rate for your credit card.

Secure Offers From Competing Card Companies

Another tactic for lowering your card’s interest rate involves securing offers from competing card companies. Sometimes, these come unsolicited in the mail or via a cold call.

However, to find the best rates for your business, you should search the internet. Although this will give you many options, it can be overwhelming to sort through the data. Fortunately, companies like Rate Genie gather the best rates for you. This way, you can compare many credit cards on one website. Undoubtedly, securing offers from the competition can increase your chances when negotiating a new interest rate.

Write It Down Before You Call

Once your financial information is at hand, write it down before you call. With your info ready, you will be able to have a productive conversation with the agent.

If you are not sure where to start, do a search for “scripts for lowering credit card rate.” You will find speaking points including asking to speak with a supervisor or expressing why your APR should be lowered. This will give you a glimpse of what to expect when speaking with the credit card representative.

Additionally, it will allow you to fine-tune your story or add any missing information. Naturally, writing down your statements will foster a productive call that can help with a lower rate for business credit cards.

Leverage Longevity And Loyalty

In addition, finance managers can leverage longevity and loyalty in the negotiation process. Of course, this is most effective when your credit card account has a good standing status.

If you have more than one card, sort them by membership date order. Then, start with the one that has been in your wallet for the longest time. This is where you can utilize your story and reiterate how long you have been a customer.

Next, you can ask them to reward your loyalty by decreasing the interest rate. Indeed, it makes sense to continue this method for each credit card when trying to reduce the APR.

Avoid Using Online Chats

To increase your chances of a successful rate negotiation, avoid using online chat. Oftentimes, online agents do not have the authority to make rate changes. Plus, you may just be interacting with a chatbot. In this case, you are only wasting time.

Ask to speak with a customer service representative or get a callback. The person you’ll talk to over the phone usually has the authority to adjust interest rates. Moreover, if you need to speak to a supervisor, the phone representative is able to transfer calls. Although online chats are convenient, it is better to avoid them when negotiating the rate on your business credit card.

The Bottom Line

When you are paying too much interest on credit card balances, it is time to start negotiating the rate. First, finance professionals will need to create a debt reduction strategy. Next, it is important to secure offers from competing card companies. Then, you should write it all down before you call. Further, leveraging longevity and loyalty can work to your advantage. Lastly, avoid using online chats during the process. Follow the points outlined above to learn how to negotiate lowering your credit card rate.