3 Ways to Lower Your Credit Card Interest Rate

Written By Jeff Hindenach
Last updated December 2, 2019

Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.

February 18, 2015

Simple. Thrifty. Living.


Advertiser Disclosure: Many of the listings that appear on this website are from companies which we receive compensation. This compensation may impact how and where products appear on this site. The site does not review or include all companies or all available products.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone.
User Generated Content Disclosure: Responses are not provided or commissioned by any of our advertisers. Responses have not been reviewed, approved or otherwise endorsed by any of our advertisers. It is not any advertiser's responsibility to ensure all posts and/or questions are answered.

Many assume it’s impossible to lower their credit card interest rate. At first glance, it seems like something that is entirely in the control of credit card companies. However, in many cases, people don’t achieve lower rates because they simply never try to reduce them.

Before contacting a credit card company, credit card users should find out the rate they are currently paying. Even credit card users who already know their rate should double check, as companies have been known to spontaneously increase rates without notifying customers. Credit card owners can visit creditcard.com to determine whether their rates are competitive with the current national average.

The first method customers can try to lower their credit card rates is incredibly obvious, but surprisingly, it’s not always used. Calling a credit card company to ask questions and negotiate a lower rate is something every customer should try at least once. Those who are long-standing customers, always pay on time, and have never asked for credit increases or lower rates should jump at this opportunity.

Before making the call, an important number customers should have in mind is their credit score. Credit card companies are not supposed to charge high rates to those with excellent or good credit. Customers should be prepared to speak with several representatives before finding one who can approve the reduction. Most reps are trained to avoid this discussion, so reaching a supervisor is key.

The easiest way to lower your interest rate is to get a better credit score. Credit lenders use your credit score to determine your interest rate, so the higher the score, the lower your rate. You can attempt to fix your credit yourself, or you can hire one of the many credit repair services to help you raise your credit score.

Debt can also drag down your credit score, so getting rid of it can be a big help. Those struggling with serious debt don’t have to do so alone. There are several companies that help with debt consolidation. These experts are more knowledgeable and experienced than customers, and thus better able to communicate with credit card companies. Customers who are going through a rough patch, such as unemployment or illness, are often eligible to have their debt “restructured.” This could result in drastically lower interest rates. If you are interested in debt consolidation, check out one of the top services, National Debt Relief.

If a credit card company is overcharging, or if there is simply a better offer available, customers should consider a balance transfer. This will require some careful research to find a credit card that has favorable rates and terms. It is also important that customers read the fine print, ideally before even making the transfer. Some companies have hidden rules, for example: if a customer has a certain number of late payments, their rates automatically increase to over 20%.

By using one of these three options, customers can lower their credit card interest rates and save thousands.

About the Author

Jeff Hindenach

Jeff Hindenach is the co-founder of Simple. Thrifty. Living. He graduated from Bowling Green State University with a Bachelor's Degree in Journalism. He has a long history of financial journalism, with a background writing for newspapers such as the San Jose Mercury News and San Francisco Examiner, as well as writing on personal finance for The Huffington Post, New York Times, Business Insider, CNBC, Newsday and The Street. He believes in giving readers the tools they need to get out of debt.

  • No comments yet. Be the first to get the conversation started. Here's some food for thought:

    Do you have any thoughts?

Submit a Comment

Your email address will not be published. Required fields are marked *