Yes You Can Lower Your Credit Card Rate
George Boelcke FCI
March 12, 2008
I was surprised to get a number of media calls about a story a national broadcaster did last week. They went to a shopping mall, randomly picked 10 people, and asked them to call their credit card company to request a lower interest rate, which six out of ten managed to do.
Can we lower our obscene credit card rates that the no-service mega banks charge us? Of course! But it´ll never happen if you don´t ask. Let´s face it, credit card rates run around 15% and up, and paying the full rate is almost like paying sticker price on a car – and who pays sticker?
In 2006, credit card companies mailed out over 6 billion junk mailers but their response rate is less than a third of one percent. It´s not only very hard to get new clients, it´s also very expensive. So good business practices, and common sense dictate that it´s way cheaper and more logical to keep current customers happy and loyal.
You don´t really need a script, you just need to know you can do it, and call the toll free number on the back of your credit card. You should have one of the junk mail offers in front of you. The best ones to use are any with a fixed rate of 9.9% or 10.9%, or a "prime plus" offer. Don´t use one of the teaser rate applications. A temporary low rate that ends next week, or in six months, is not what you´re looking for. Besides, they´re only used to suck you in where the game is to get you so excited you´ll run up your card to the max and are stuck when the rate goes sky high, which happens with three-quarters of all people who apply!
When you´re ready to call, simply tell customer service you have this offer and would like them to match it, because you´re a loyal and good customer and you´re shopping around. The rate on the offer in the mail is way better and you´re considering switching to save money. If they don´t cooperate, ask to speak to a supervisor.
You´ll likely get it if you have a decent credit score, have dealt with your card issuer for a while, and have a good payment track record. You´re exactly the kind of client they want to attract, and in your case retain.
It is likely that you´ll strike out if you´ve been at your credit limit for some time, have been in arrears and are only making minimum payments. Card issuers aren´t dumb and you´d be surprised if you could see how much information they track about you. They know most of those customers are lucky to have a credit card, and switching is more of a threat than reality.
Now if you didn´t know this was possible, it should make you aware and wondering what else there is in the world of credit that you don´t know that´ll cost you interest, fees and other charges you don´t need to pay. After all, lenders like nothing better than uninformed customers, because that´s THE best way for them to maximize their profits.
But remember: If you don´t carry a credit card balance each month, who cares what the rate is, and THAT is the situation we should all be in. It´s the start of financial freedom!
Can we lower our obscene credit card rates that the no-service mega banks charge us? Of course! But it´ll never happen if you don´t ask. Let´s face it, credit card rates run around 15% and up, and paying the full rate is almost like paying sticker price on a car – and who pays sticker?
In 2006, credit card companies mailed out over 6 billion junk mailers but their response rate is less than a third of one percent. It´s not only very hard to get new clients, it´s also very expensive. So good business practices, and common sense dictate that it´s way cheaper and more logical to keep current customers happy and loyal.
You don´t really need a script, you just need to know you can do it, and call the toll free number on the back of your credit card. You should have one of the junk mail offers in front of you. The best ones to use are any with a fixed rate of 9.9% or 10.9%, or a "prime plus" offer. Don´t use one of the teaser rate applications. A temporary low rate that ends next week, or in six months, is not what you´re looking for. Besides, they´re only used to suck you in where the game is to get you so excited you´ll run up your card to the max and are stuck when the rate goes sky high, which happens with three-quarters of all people who apply!
When you´re ready to call, simply tell customer service you have this offer and would like them to match it, because you´re a loyal and good customer and you´re shopping around. The rate on the offer in the mail is way better and you´re considering switching to save money. If they don´t cooperate, ask to speak to a supervisor.
You´ll likely get it if you have a decent credit score, have dealt with your card issuer for a while, and have a good payment track record. You´re exactly the kind of client they want to attract, and in your case retain.
It is likely that you´ll strike out if you´ve been at your credit limit for some time, have been in arrears and are only making minimum payments. Card issuers aren´t dumb and you´d be surprised if you could see how much information they track about you. They know most of those customers are lucky to have a credit card, and switching is more of a threat than reality.
Now if you didn´t know this was possible, it should make you aware and wondering what else there is in the world of credit that you don´t know that´ll cost you interest, fees and other charges you don´t need to pay. After all, lenders like nothing better than uninformed customers, because that´s THE best way for them to maximize their profits.
But remember: If you don´t carry a credit card balance each month, who cares what the rate is, and THAT is the situation we should all be in. It´s the start of financial freedom!
Print
Email
