(Closed) NWR: Credit cards & interest rates…

posted 6 years ago in Money
Post # 3
Member
1619 posts
Bumble bee
  • Wedding: September 2011

@Mrs.Mittens:  In my experience, it certainly never hurts to try!  I have successfully negotiated lower rates on many of my bills – from my utilities to my phone and even to my rent.  I have found that it really never hurts to try.  The worst anyone will say is no. 

Post # 5
Member
11747 posts
Sugar Beekeeper
  • Wedding: November 1999

Whatever you do don’t cancel it! Keep it even if you don’t use it so the payment history is there. Since its good to use open cards every now and again, if you can’t get the interest rate lowered just put small purchases on it and pay it off immediatley so you don’t accrue interest. 

Post # 7
Member
2253 posts
Buzzing bee
  • Wedding: October 2012

I’ve negotiated lower interest rates before. Your biggest bargaining chip is that you can walk away from the company and go elsewhere with another card. However, to have some leverage, you need to pay the card off first. It’s better to say, “I have a $0 balance on the card yet my interest rates are so high, what can you do for me? rather than “I can pay this balance off completely but I want you to lower my interest rates first.” It doesn’t make sense for the company to lower your rates if you’re carrying a balance bc that interest is feeding their bottom line. Also, don’t believe the company when they tell you any account can only be reviewed 1 time per X amount of months for an interest adjustment. I negotiated my FI’s CC twice in one month on his behalf. 

Even if you decide not to pursue lowering the APR, you should pay it off anyway bc any percentage of interest on a $0 balance is $0. 

Post # 8
Member
774 posts
Busy bee
  • Wedding: September 2012

Pay it off, then ask. If you have a good credit score it shouldn’t be a problem. I know credit cards are a pain and oh so tempting, but they are the best way to get a awesome credit score. Just use it, pay it, use it, pay it. And if you don’t leave a big balance on there after 21 days, interest rates are no biggie!

Post # 10
Member
2065 posts
Buzzing bee
  • Wedding: December 2011

Honestly I would ask before you pay it off. If you have a zero balance they have zero incentive to give you a lower rate since they aren’t making ANY money off of you. While you still have a balance, they think they’ll make some money off you.

I’ve negotiated lower rates many times, and you definitely shouldn’t cancel the card! Just keep it around to have the history to show for it.

Post # 12
Member
2777 posts
Sugar bee
  • Wedding: July 2013

I have and old card I paid off with a 29.99% interest rate.  I made a late payment on it once and they raised the rate.  I was never able to lower the rate.  I have called several times since the incident which happened 4 years ago and I’ve never offered to lower it.  They say I’m not a candidate or not eligible.

I finally finally paid it off (and by paying it off I also paid off our old couch 2 years after its purchase, and we don’t even own it anymore.  I gave it to my parents when we left because we couldn’t afford to ship it across the country.)

This old card is sitting in some place in the apartment so I’m not tempted to ever use it again.  I’m keeping it active because its an old account.  Maybe I’ll put a  dollar on it every two years so they dont shut it down.

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