How to Negotiate Credit Card Interest Rates

Credit card companies make a lot of their money from the interest rates they charge you and the additional fees they add onto your account. This is a profit for them but can be a big problem for you. The high interest rates and additional fees can quickly escalate your balance to an amount that you are unable to pay. The continual fees will keep being added to your account until you can pay the balance down to an amount that won’t cause the credit card company to add any more charges. The thing to know is how to negotiate with your credit card company so that you can lower the fees and interest rates being charged to your account. Reducing the interest rates on your credit cards will help you to get a handle on your balances and then move forward to paying the off completely. You may also find help with a debt consolidation company.

One good thing is to have a good payment history. If you have been making at least your minimum monthly payments on time you may have a little room to ask for a lower interest rate. Your credit card company will see you as being reliable and they will even take into account your effort to pay off the balance. Also remember to state what it is you want and be willing to hear their side. If you threaten the credit card company they will take the defense and feel that they don’t have to do anything for you. They have the upper hand so you want to be considerate of that fact and make your case respectfully. A debt consolidation company can also help you with negotiating lower interest rates.

Don’t use bankruptcy as a way of getting your credit card company to lower your interest rates. This will make them think that you are unreliable and may even hinder your negotiation. If you are thinking of filing for bankruptcy instead of debt consolidation that is your choice but you don’t have to tell your credit card company this. When you are negotiating you should try and negotiate for a lower fixed rate. That way you know the interest rate will stay the same and you won’t have to worry about it increasing on you again. The most important thing is to go to the credit card company with an offer. Know exactly what it is that you want and how you intend to get it. You want to make sure your offer is beneficial to you and your credit card company. That way they will see a benefit in negotiating with you.

Negotiating a lower interest rate will take time and patience but it can be done. If the first person you talk to is not willing to assist you ask for a higher up that can help you with your interest rate concerns. If you are knowledgeable about what you want and persistent you are sure to come out with some sort of benefit. The thing to remember is that once you have negotiated a lower interest rate, you should stop using your credit card and continue to pay off your credit card balance. If you continue to have trouble negotiating a lower interest rate you can always look to a debt consolidation company to help you consolidate your debt and negotiate your payments.

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