The Truth About Credit Cards.com

Many consumers are riddled with credit card debt thanks in part to APR that is through the roof, making it very difficult to pay down debts and get back in the black.

Credit card issuers aren’t in the business of losing customers, and if they feel the threat of you leaving them, they’ll do whatever they can to keep you onboard.

It’s clear that they want our business, as evidenced by the multitude of offers received in our mailboxes seemingly everyday, and the bountiful array of credit card advertisements found on seemingly every website on the Internet.

And though reducing your interest rate may cut into their profits, losing you (and your debt) altogether will have a far greater impact on their revenue.

That said, if you’re a good customer with a solid payment history and a high APR on your credit card, call your card issuer immediately to ask about a rate reduction.

It’s a very standard practice, and one that pretty much any customer service representative can handle without asking a supervisor.

When you do call, make sure you’re assertive and clear about what you want. Ask for more than you think they’ll offer, and you should end up with a solid rate reduction.

Tell them that you have other, better offers that you’re actively considering if you’re forced to continue paying the current APR they offer.

The second they hear that you’re considering moving your debt elsewhere, they will likely oblige to your demands, and lower your rate.

The changes should be instant, and you’ll start saving money immediately. After all, why pay 30% APR when it could be as low as 10%.

I’ve even heard that some customers have had their 0% APR introductory rate extended simply by asking for an extension.

The annual savings could be in the hundreds or even more if you carry a significant amount of debt, and should allow you to pay off your debt completely a lot faster and economically.

Either way, don’t be afraid to ask for a discount, it’s your right as a customer and it only takes a few minutes.

One final note: If possible, consider executing a credit card balance transfer to move the debt to a 0% APR credit card.

Doing so will help you avoid finance charges and interest altogether for a specified period of time, though the interest rate will jump at the end of the introductory period.

And one other cautionary mention.  Make sure your credit card issuer lowers your APR for your existing balance along with future purchases.

If they fail to do so, you’ll just be paying the lower APR balances off first thanks to negative payment hierarchy.