One phone call can save you thousands of dollars in interest. Credit card companies reduce interest rates for customers who ask — about 70% of cardholders who request a rate reduction receive one, according to a CreditCards.com survey.
Before You Call - Know your current APR on each card - Check your credit score (free on Credit Karma) - Research competing offers — having a specific competitor rate strengthens your position - Gather your payment history (showing on-time payments helps)
The Script "Hi, I've been a customer for [X years] and have always paid on time. I've received offers from other cards with [lower rate]% APR, and I'm considering transferring my balance. Before I do that, I wanted to see if you could match that rate or offer a lower APR on my account."
What to Expect - First representative says no: ask to speak with a supervisor or the retention department - Get the reduced rate confirmed in writing (email or letter) - Even a 5% rate reduction on $10,000 saves $500/year
Balance Transfers If your creditor won't negotiate, balance transfer cards with 0% introductory APR for 15-21 months can save significant money. Account for the 3-5% transfer fee in your math.