Best Ways to Negotiate a Better Credit Card Interest Rate

Written By Jeff Hindenach
Last updated February 2, 2021

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.

April 18, 2016

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.

Lowering your credit card or loan interest rate could save you hundreds or even thousands of dollars. If you owe $15,762, the average amount for a household in the United States, then you could save nearly $300 just by lowering your interest rate by 2 percent.

The more you owe and the higher your current rate is, the more important it is for you to negotiate for a better interest rate. Many people find that they can lower their rates by following these four tips.

Your credit card company or online loan company is more likely to lower your interest rate if you have a good credit rating. If you have a score under 700, you might get lucky with a slightly lower rate. If your score is over 700, however, there is a very good chance of lowering the rate by several percentage points.

There are several easy ways to improve your credit score quickly:

  • Pay off as much debt as possible to lower your credit utilization ratio
  • Make all your payments on time
  • Keep accounts open after you reach a zero balance
  • Remove inaccurate information from your credit report
  • Hire one of the best credit repair services to help you raise your credit score

Your credit card company won’t lower your interest rate unless you can make a compelling argument. Doing research is the best way to prepare for this conversation.

Some things you need to know are:

  • The average rate for people with your credit score
  • Lower rates offered by other credit card companies
  • How your financial situation has improved in recent years
  • When you talk to a customer service representative, mention this research as evidence that you deserve a lower interest rate.

Your credit card company might not want to lower your rate immediately, so you need to remain firm throughout the discussion. It is equally important to remain polite. You won’t get anywhere by raising your voice or insulting the representative.

If the person you talk to can’t, or won’t, lower your rate, ask to speak to his or her supervisor. Managers usually have more flexibility, so they can make deals that regular customer services reps can’t offer.

If negotiating makes you feel uncomfortable, you might want to rely on a negotiation script that will lead you through the conversation.

You can find dozens of negotiation scripts online that can help you plead your case effectively. Review your options to find one that matches your situation well.

Negotiating with your credit card company will take a little effort. Considering how much money you could save, though, it’s well worth the time.

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 *