Credit Report Blog
Website CertifiedPrivacy Protected
Credit Report & Credit Score; Credit Repair, Debt Management > Credit Report > Is asking for a lower credit card interest rate a good idea?

Is asking for a lower credit card interest rate a good idea?

By Ruth Racey
Published: Thursday, October 22nd, 2009

Yes it is, just make sure you can pay the minimum fee using your current interest rate.

Before the credit crisis, clients were encouraged to request lower rates as rewards for their consistency for paying on time. However, with the current mess the credit card industry is facing, that would not be very easy as it may seem.

In every credit card transaction, a change in terms or conditions would mean a requirement for a credit report. This report contains additional information concerning your job, income, family, etc. which would be the company’s basis for approving your request.

In relation to this, you should check your past accounts and deals first before letting the card issuers dig into your credit history. Because if they find inactive accounts or reduction of credit restrictions, they would lower your score, and your initial plan of reducing your interest rate would be replaced by an untimely increase. In addition, your scores would also drop another notch because of this credit report inquiry.

No matter how responsible and how creditworthy some consumers are, their scores still go down because of the actions of these creditors. Although this information from your records could not exactly tell what your money management habits are or how well you can pay, credit card issuers still consider your scores as their basis, which as a result could give you a big problem.

If you are having setbacks with your current interest rate, but still want to fight for a reduction, you should not let the credit card issuers know that you are having financial difficulties – and you should remember not to ask for changes that would make you vulnerable in front of them. Otherwise, they would respond with additional problems in your credits, and you would not like to be in that kind of situation.

If you are really having trouble in meeting your minimum payments, then that is a different story. You should call or ask for assistance immediately.

Credit card issuers still want you to continue having transactions with them, so you should not be afraid of letting them know. According to a report, about 2.7 million clients were relieved from their debts in 2008. The help from their creditors included residence, debt consolidation, temporary forbearance, a reduction in their interest rates, or a payment plan.

Interestingly, a study showed that almost two-thirds of consumers who asked and were granted a change in terms were actually the ones who had difficulty fulfilling their payments afterwards. That means that though they were responsible for your inability to pay your minimum, they would help you stand up afterwards.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.