Lower the Interest Rate on Your Credit Card
Posted by Gail | Filed under Credit Wise
You’d think that after all my nattering on about paying the lowest possible interest on your debt so you can get it paid off faster, that I’d be seeing fewer people with high-cost cards. Not so. With interest rates rising, credit rules tightening, and the world in turmoil, people seem desperate to get credit and are willing to pay anything. Witness the 36% consolidation loan I uncovered in one couple’s finances. Really? A consolidation loan at 36%. Why bother?
For those who have take my message to heart – and there have been plenty – but just don’t know how to go about negotiating with creditors, here are a few tips.
First, you have to have a pretty good credit record or be on the verge of bankruptcy to get anyone to listen to you. Why? No lender wants to lose a prime customer with a pristine credit history. But if your circumstances are dire, lenders are also willing to cut lots of slack in order to get a least a part of their money back. This is the tactic used by Debt Settlement organizations to get your credit bill cut in half.
Second, you must be very persistent. Very, very persistent.
Next, call the customer service department and asks for a lower rate. Your call will go something like this:
Hi, my name is Molly McGoo and I am a good customer, but I have received several offers in the mail from other credit card companies with lower interest rates recently. I want a lower rate on your card, or I’ll just have to cancel my card and switch to one of those less expensive companies.
or
Hi, my name is Molly McGoo and I have a really big problem. I have quite a few credit cards and I’ve been dumb enough to rack ‘em all up and now I can’t make the payments. I owe you $______________, but I owe about $25,000 in all, and if I can’t figure out how to deal with all of this, I’m going to have to go see a bankruptcy trustee. Is there anyway you can help me not do that?
Some lenders will give you a lower rate simply because you asked. Imagine that. Of course, others will say there’s nothing they can do. If you’re denied a rate reduction, don’t give up. Wait a couple of days and try again. You may reach a more cooperative customer service rep. If it doesn’t work on your second try, escalate the call.
Ask for a supervisor. Explain your situation again and then ask, “What can you do to help me out?” If he can’t do anything, ask for a manager. If she can’t do anything either, keep escalating the call. You want to find the body that CAN do something.
If you have a good credit history, remind the guy you’re talking to that other card issuers want your business. Be polite. Stress how much you like your card. But be firm. You’re not going to settle for your crappy rate. You’ll move the business. They may reduce your rate on the spot. Or they may say they need to look into it and will get back to you. If they don’t, call again.
If you have a crappy credit history, remind the guy you’re talking to that you are desperate, that he is only one of many creditors you’re speaking with, and that if you can’t find a way out of this mess you’ve made of your financial life, then you’re willing to bite the bullet, declare bankruptcy and start fresh.
I’ve had couples negotiate up to 10% off their interest rates. Corrina of “Corrina & Jay” got her card company to waive all the interest accrued on her account for a set of cheques that would pay off the principal. And when a couple applied to their bank for a consolidation loan and were quoted a rate 7% higher than it should have been for their circumstances, I told them to tell the bank to shove it. They did. And they ended up with another financing alternative that was 7% cheaper.
Why would you pay even $10 more to a credit card company than you absolutely have to?
BTW: If anyone in the Stayner/Wasaga Beach/Collingwood area has started a Gail Club, I have someone who would like to join you. Let me know at getgvo@gmail.com and I’ll point her in your direction.
January 28, 2009 at 7:41 am
Thanks Gail. Although this situation doesn’t apply to me, I did just applied for a credit card with a 28% interest rate to establish my credit after bankruptcy. Hopefully, I will get approved. Do I plan to always pay the monthly balance? Absolutely. With credit card companies, I’m always having my fists out to use them before they can use me
Respectfully,
Josef
January 28, 2009 at 8:15 am
I tried the tactics Gail mentioned with my credit card company but unfortunately it didn’t work. However, when I filed my consumer proposal (about a month later) the credit card company was offered $0.26 on the dollar AND they accepted it. I was shocked that their was nothing they could do to help me but once I went to a bankruptcy trustee about my proposal, their bottom line for acceptance was so low. ~shaking head~
January 28, 2009 at 9:05 am
This is good timing because I’ve been very curious about something lately. Years ago I called and had my credit card set to the lowest interest rate available. (at the time it was 9.9% and I went from a no fee card to $25 per year) Slowly but surely through the years RBC has raised their lowest possible interest rate on me until now, it is up to 11.9%. I know this is still quite low when you consider what store card interest rates are but I do still see some credit cards with lower interest rates and am wondering if 11.9% truly is their bottom line or if anyone knows of a lower rate still with RBC. They are the only ones I’ve ever had a card with and I do not want to lose my history with them because I have an excellent credit score. I am currently carrying a balance but it will be paid off within a year. I have also been thinking lately about whether once I have the balance paid off if I should call and have them give me the lowest possible interest rate available on a no fee card. As I do not ever plan on carrying a balance ever again on my card, is it worth going to a higher interest rate to save the yearly fee (I HATE paying banking fees). I welcome anyone’s opinion on this. Thanks
January 28, 2009 at 9:26 am
Natalie, I just checked my PC Financial MasterCard rate and as you can see it’s less then 1/2 of what your RBC card is at, I do pay my card in full every month though.
Hope this helps.
interest %
purchases 5.970%
total cash advances 5.970%
January 28, 2009 at 10:06 am
My husband and I recently tried this with a credit card company we had been dealing with for more than 15 years. For the first 3 years a balance was carried but a payment was never missed, for the last 12 years paid in full every month.
We requested 2 things: 1) that the credit limit be raised as my husband was using the card for company travel and did not want to be caught short (he had been using the card for travel for 6 months already – still paying the higher amount in full each month) and 2) We wanted our interst rate lowered (just in case his company did not get a cheque to us in time to pay off the balance – unlikely that we would not have funds available but better safe than sorry)
The credit card company said that the computer was the only one who could decide when we got our limit changes and the computer had given us a 250 increase a couple of months earlier. Therefor our request could not even be considered for 6 months. The request for the change in interest rate was dismissed out of hand. We threatened to cancel the card and were simply told that was unfortunate, we reminded them of our long history with them but again they called our bluff. We asked to speak to a manager but they did not call back despite 2 requests. No one called us until 2 months after the card was cancelled, it was too late by then.
Through stubborness this credit card company lost a great deal of business, although they did not earn any interest from us they still earned the merchant fees on all transactions. We used this card for every purchase to accumulate points and my husband travelled at least 3 times per month – so the fees would not be pennies. We are much happier with the service we recieve from our new provider and once we have a few months of history with them will attempt to lower the interest rate – they would not lower it with the original application.
January 28, 2009 at 10:23 am
@ paul neve- Is this a low intro rate for a limited amount of time (eg. 6 months)? I had thought that the PC Mastercard was more like 18 or 19%? That is incredibly low.
January 28, 2009 at 10:55 am
Wow, I am shocked by that 36% interest rate for a consolidation loan… that’s just insane – why would anyone do that?
I never have attempted to negotiate a lower rate, but I do know that negotiating with customer service reps through phone & internet companies has occassionally given me much success, although it seems to depend on the person and the time that you are calling.
Michelle, that is crazy and it’s nice to know that a company with such poor customer service is not getting your business any more.
January 28, 2009 at 11:05 am
hey Natalie – this is my rate and has been for a few years, maybe its just payment history, i’m not sure.
January 28, 2009 at 11:58 am
I have a Capital One cc and a Citibank cc and both are around 5% and have been from the beginning. If your credit card company won’t go lower, switch to a different cc, especially if you are still working to pay off a balance. That’s what I did for myself and my husband’s cards. On another note, I have also negotiated lower monthly rates for my cell phone, telephone, cable and internet providers. I just threatened to switch to another provider and wa la! – much lower monthly rates. We have also recently seen competition with our natural gas provider in BC and I’m working on them now.
January 28, 2009 at 12:07 pm
My one and only credit card charges 19.9% interest on a 1000 limit…I’m not too pleased about it, but I’m just establishing a credit history, so for now I’m willing to suck it up. My main concern is that I’ll need to make a 2k purchase on my card later this year (with the money in my account to pay, of course), so I’ll need to bug them to raise my limit, and hopefully will get the interest lowered in the process.
January 28, 2009 at 12:08 pm
@ Diana C – you speak the truth, the goal of the big 2 phone companies are to retain customers, so they offer bundle discounts. but if you threaten to walk away when your term is up the tune changes… most of the time. know when your term expires and use it to your advantage.
January 28, 2009 at 12:33 pm
I keep meaning to do this… I have 2 credit cards, both with fairly high interest rates. One is paid off in full, but I do carry a balance with the other one that I am working diligently to pay off.
Another great website with info on lowering your interest rate is this one: http://www.ehow.com/how_109504_negotiate-better-credit.html
January 28, 2009 at 12:34 pm
Another good note: I always pay my credit card off at the end of the month so there is no interest but one month I ended up miscalculating by about $100 dollars. I called CIBC and they waved my interest fee since I explained it was a sincere mistake and I had the money to pay. That’s what I call customer service!
January 28, 2009 at 12:57 pm
I called BMO Mastercard to reduce my interest rate from 19%. They reduced it to 11.4% immediately, but they did charge me an annual “lower-interest account fee” of $35 (less than one month’s interest). Once the card is paid off, I intend to renegotiate and eliminate the fee, but this was helpful and immediate.
January 28, 2009 at 1:30 pm
@ Rebecca – I had a similar problem in my younger days, where I didn’t want a high limit but had to occasionally charge an amount higher than my amount (ie booking a flight). What I did was simply a few days ahead of time deposit a large amount into my credit card account, causing them to credit my account. Ie have $0 on the card with $1000 limit, “pay” $1000 so you have -$1000, then charge $2000 on the card no problem. Yes, you’re forgoing the interest you’d earn on it for a couple days but I found that a reasonable tradeoff to keep me from raising a limit I really didn’t need. Now I’m better with money but back then it was a useful “engineered” preventative measure.
January 28, 2009 at 1:53 pm
Nancy – last week I just did the same thing as you. I tried to bluff my way from 18.5% to a lower rate, but they said all that with Mosaic you either get 18.5 with no fee or 11.9 with a $35 year annual fee. Like Natalie, I’ve got a great payment history but with grad school tuition of $25000 in less than two years, I’ve been carrying a balance for a few months now. It should be paid off by July at the latest, but the $35 fee was a good way for me to save a couple hundred dollars interest in the meantime. I’m not thrilled that this is the only option, but other than that I LOVE the BMO card, especially the airmiles that I get with it. I haven’t paid for gas in months as I use the airmiles to get $20 gift certs for Shell. Its a good deal if you ask me… frees up 15% of my Gail budget!
January 28, 2009 at 1:54 pm
Just got off the phone with our CC companies. Right now we each have a VISA at 6.9% but there is an annual fee of $25.00 each. As the balance is paid in full each month she suggested that we opt for the 19.75% cards with no annual fee and as they are always paid off the interest rate will not come into effect. We get cash back at the end of each December-1/2% on usage – whoppee…….That’s a scarey rate though isn’t it? We are also getting money back for the annual fee that we’ve paid for this year.
Our one Capital One card is at 6.99%. They won’t dicker with me, (I’m listed as being able to talk to them about the account, but can make no changes as it’s in my hubby’s name) so I’m having him call when he gets home. Sounds like they’ll lower it. Will let you know.
Sure hope this has ‘Gail Approval’.
January 28, 2009 at 1:54 pm
@Natalie PCMastercard is offering 6 months at 0.97% on balance transfers right now. My rate isn’t anywhere near as good as Paul’s (I think I pay 20% or thereabouts) but I never carry a balance so I don’ t care what the interest rate is. The card is no fee, but bare bones. This might be an option for you if you will have your debt paid off in six or seven months.
January 28, 2009 at 1:57 pm
Oh I should add that watching Gail’s show has been the source of my newfound financial knowledge. In early December I was carrying a balance of about $3400 on one mastercard, at 28%! And about $6000 on the 18.5% one. After watching the show, I realized that I had options and did a balance transfer from the 28% card to the lower one. I cut the other card up. Then, I asked for/paid for the 11.5% rate. So, in less than a month and with about three minutes of my time, I reduced my rate from 28% to 11.9. I feel like a bit of an idiot for paying so much all that time, but I’m learning and won’t make that mistake again.
Also, from using Gail’s budget and tracking my jar money online (I don’t like cash), I’ve managed to pay off $1400 of the credit debt in three weeks. Which is considerable because the winter is a slow time of the year for me at work – we go down to part time. Its the first time that I don’t feel strapped at all during this time of year. Thanks Gail!
January 28, 2009 at 2:40 pm
As much as I want to hate the credit card companies, I just can’t.
When I signed up for the card I read the contract, gritted my teeth and went for it. When I use it, I am using BORROWED funds, I am indebted to the card until it is paid and it is perfectly reasonable for them to be compensated for that privledge.
It’s up to ME to decide which card is right for me, and when it is appropriate to borrow on it. I didn’t carry a balance for years, I had to when times were unpredictable but hated paying for that interest (honestly it would have been more dire if I didn’t have that option).
Now I am in a no-balance position again and it feels great. I still keep the card though and I am thankful to have it…. (reservations are held easily, for example) even if it has what feels like blood-sucking rates if I carried a balance.
Hey, If nothing else it motivates me NOT to use the thing!!!! LOL
January 28, 2009 at 2:51 pm
@ paul- I think your rate was part of a low introductory offer for 6 months and maybe they forgot to raise your rate after the time elapsed! PC financial rates are generally 19% or 23%.
I am considering doing a Capital One Card that guarantees 4.75% for 3 years on balance transfers and new purchases. I will save myself about $500 in interest in the long run. Btw, this card is no fee.
Once I am out of debt I am definitely going to switch my RBC card back to no fee b/c I will not ever carry a balance again.
January 28, 2009 at 5:53 pm
Why should I care what the interest rate is on my credit card? I never carry a balance, so all that matters is that there’s no annual fee. In case of emergency? Well, that’s what my emergency fund is for.
January 28, 2009 at 6:15 pm
I tried getting a lower rate with BMO, but I hit a brick wall, the lady said I already have the lowest at 11.9%.
I’m thinking the Scotia secured Visa is looking a lot better with their rates.
January 28, 2009 at 7:16 pm
Update:
Hubby called Capital One. He’s too nice and didn’t push (like I would have) and was told that 6.99% guaranteed is their best rate. He made a good point though not unlike Deborah. If we don’t carry a balance, what does it matter?
@Natalie: Stupid question: What is a balance transfer?
January 28, 2009 at 7:20 pm
My husband and I both called the credit card company and asked for our interest rate to be reduced. Shocked and pleasantly suprised it went from 14.9% TO 7.9%, IN ONE PHONE CALL. We were very shocked, but happy. This was over 6 months ago, as I had seen it on Gails show….. and the interest rate has remained the same….. We keep watching it very closely……..Make sure you call the c.c. company very 3 months to reduce your rate, otherwise you will be stuck with the fixed rate.
January 28, 2009 at 8:09 pm
Here’s another tip to lower your credit cards rates (if you’re paying down a large sum):
Every couple of months I get these stupid balance transfer cheques. Here’s something sneaky you can do if you’re VERY careful about your timing:
1. If you have the luxury of a line of credit – simply pay off the balance of your target credit card. Wait a few days for the payment to be posted.
2. Write yourself a “convenience cheque” and throw it back on to your line of credit.
RESULT = you’ve got the advertised interest rate! (Been paying 0.99% for the last 1.5 years, on a 18.5% card)
THE FINE PRINT:
Make sure you have no automatic payments, pending transactions on the card. When you use one of those cheques, consider the card useless. Generally speaking, if you make any purchases – that purchase will rack up interest until you have that balance transfer paid off (this is where they cash in big time if you fail to do this).
Most of these cheques come with a expiry date. For example, my remaining balance will expire on May 1, 2009. I will likely not have the balance paid off. BUT I keep getting new cheques! I’ll simply pay off the balance and write another cheque to the account when that day comes.
Repeat as needed.
So far, I’ve paid down about $13,000 steady (student loans @ 0.99% are great!). For about $10 a month in interest, it works for me.
January 28, 2009 at 10:11 pm
Beware! The use of CC cheques may come with administration fees. Do read the fine print.
January 28, 2009 at 10:31 pm
@paul
I have tried lowering my cc rate with PC but their explanation for NOT lowering it is that the card has no fee and offers points.
January 28, 2009 at 11:31 pm
I checked PC’s website. The posted rate is 19.57% – ouch!
I don’t have one, but a lot of people like the points system. If you pay it off each month and put EVERYTHING on it it can be a great pay off.
With the current credit crunch, it’s getting a lot harder to get good rates and high limits. If you are fortunate enough to have a low rate with a good limit – don’t close it!! You may not be able to get that back!!
January 29, 2009 at 12:24 am
I have a pretty low rate with TD that I believe gets adjusted with prime. It seems to change every month, but usually hovers around 11%. I asked for them to lower my interest rate since I always pay above the minimum, and I carry a balance, and they said no.
I also have a Citibank IKEA credit card which charges 28.8% interest, and I have never paid a penny in interest, since I always take advantage of the no-interest, no-payment promotions. So long as every penny is covered by the due date, I don’t pay a penny of interest, and I like the idea of my 0% credit card!
January 29, 2009 at 6:51 am
A few weeks ago, I cslled RBC to try and get my interest rate lowered (it was at 18.5%). No such luck.
So I made myself my own consolidation loan. I transferred the entire balance of the card to my RBC student line of credit (which is currently at 4.5%) and then put the credit card away in the filing cabinet, to be used for emergencies only.
January 29, 2009 at 8:33 am
Catherine- A balance transfer is simply transferring the balance of one credit card to another. If you had a 19% card with a $3000 and the CC Company refused to lower your interest rate you can transfer the balance to a different credit card with a lower interest rate so that you pay less interest but the new company gets your business.
I plan on doing this from a 11.9% card to a 4.75%
January 29, 2009 at 8:46 am
I just got my interest lowered from 18.5% to 11.5%!!!!! One call was all it took!! Thanks Gail!!!
January 29, 2009 at 8:46 pm
For the past four months my monthly credit card balance has been $0 because a) I took out a personal installment loan to pay off the balance and b) I settle any payments on the card immediately. In seven months the loan will be completely paid down.
Last night, I received a notice from my bank that the APR will be increased from the end of February to – get this – 31.7% !!!!! With a note saying, in effect, if I don’t like it I can lump it!
Time to apply for a card with another bank and then I can tell my bank it can lump it! Grrrrrrrrr…
January 30, 2009 at 11:32 am
Sandra: Good for you for making that call!!
Ajana: Holy Moly!! 31.7%??? What kind of bank are you dealing with? Surely you can get a better rate elsewhere. Good luck with that!
January 30, 2009 at 1:39 pm
Why lower the interest rate on a CC if you always pay the balance?
Because you must plan for the worst.
If something happens to you (health) and you are unable to set up payment, high rates will be charged.
If someone put a payment on your card at the wrong time and you donot have the $ to cover it… (don’t ask how I know)
If you are disputing a charge and cannot pay the extra amount…
So why? Because every once in a while, caca hits the fan.
February 5, 2009 at 9:53 pm
[...] Gail Vaz-Oxlade offers tips on negotiating with credit card companies to lower the interest rate. [...]
February 5, 2009 at 11:34 pm
I called TD trying to get my rates lowered. No go… In the end I had to get a card from another company.
February 7, 2009 at 1:12 pm
Paul, that must be for a balance transfer deal. Here is the info from the PC financial site.
The annual purchase interest rate will apply to all purchases. If your application is approved, you will qualify, based on your annual income and credit history, for one of two purchase interest rates: 19.97% (Standard rate) or 23.97% (Basic rate).
February 7, 2009 at 1:35 pm
capital one currently has various card options and one where you can set in for 3 years at 4.5% or something like that. We plan on applying for that and transfering our ballances if we are approved.
February 9, 2009 at 8:03 pm
I’m so frustrated because I called WAMU/Chase card to lower my rate today, it’s at 31.99 now and started at 9.99. They said in 2007 they sent a letter stating interest rates will go up and I can opt out. I didn’t realize what that meant and ignored it. Basically it was to cancel my card at the time. I asked for a supervisor and he just gave me the same rant “the computer will notify if an offer is up”. I explained that I have never received an offer from their company and always pay more than the minimum and on time every month. He said there’s nothing he can do. I didn’t use the tactic that I might have to close the account due to possible BK filing. I’m going to try that one in a few days when I call back. Are there any other suggestions I can use?
February 15, 2009 at 4:31 pm
Your site does not correctly work in safari browser
February 15, 2009 at 4:37 pm
rocasoync;
actually I have Safari browser and never have had a problem with Gail’s site.
Maybe you need an upgrade?
February 16, 2009 at 1:26 am
Maria, To be honest if i were you i would just tell them that you are going to switch over to another creditor where you can get your rate significantly lower for 3 years. the one i am talking about is through capitol one, they have a great offer on right now. The thing about creditors is that they count on us not understanding what is available and just giving up and saying ok thats it i believe you and there is nothing else you can offer me.
Something else you can try is seeing ifthey have other cards with better rates that you can switch your credit to.
Don’t take no for an answer.
March 5, 2009 at 1:19 pm
I just read this article and decided it was worth a shot so I called up my credit card company (AT&T Universal Card) and minutes later my interest rate went down from 14.99% to 5.99%! I have a balance of about $12k on there right now so this will be a nice chunk of savings. Thanks!
May 13, 2009 at 4:26 pm
Just so you know, its almost all a lie. When you call your CC they see your whole account, when you ask for a lower apr, if you account is eligible, it will say so, if not, they will tell you its not. Asking for a supervisor/manager doesnt work, Why would a company make rules and policys that could be broken by just asking for a manager. Its actually quite annoying how many people say “ask for a manager”. Man take some responsiblity and pay back the money you agreed to borrow. If you threaten to close the account, they may have something to offer you, but if they say no.. So will the supervisor… so silly.
May 13, 2009 at 5:31 pm
credit card rates are like any other credit product…conditional upon your credit history…typically a bank will offer one low interest card based on the prime rate and the other rates are a standard rate…you can’t negotiate that rate but you can switch to the lower rate card…go in see your banker and talk to them…they are there to help and ADVISE
May 13, 2009 at 6:33 pm
Gail’s blog is usually so positive so forgive me if this comes across as negative —–Jay, I’m sorry but I just can’t agree with your comments. It almost sounds like you work for one of the CC companies?
First of all, I tried this on a credit card I have (I know, I shouldn’t be carrying a balance, but that is another story). I called, the employee initially said no and then the supervisor said yes. I don’t believe it was a diabolical scheme- the first employee I talked to did not have sufficient training, knowledge and/or authority for the request I was making.
Second, I DID “take responsibility” and I WAS paying back what I “agreed to borrow”, however, the company arbitrarily raised my interest rate after the economy went down the tubes last fall. I don’t like your implication that somehow asking my bank/CC company to change their rates is interpreted as backing out of an agreed upon contract. These companies do this sort of thing all of the time when things things aren’t going their way. I’m supposed to suck it up without so much as an “annoying” phone call? If Gail has taught me anything, it is NOT “silly” stick up for myself.
I don’t think my story is unusual, at least not if you read Gail’s blog on a regular basis.
May 14, 2009 at 5:02 pm
I just called RBC to ask to lower my interest rate, which is 24.5%. The card is a RBC Classic Visa. They would not lower my rate because I have been a few days late with two payments in the past 6 months. IF you don’t pay minimum payment for 6 months in a row, apparently they can’t do anything. I just got out of post secondary education and living in a major city I don’t have any extra money to pay off the debt I incured while in college.
My question is, is there anything I can do? Am I allowed to cancel this card and move to , say, CIBC Visa, that offers a 11.5% interest rate? I don’t have a great credit history, would the even take me? Does anyone have negotiation tactics? This is all very new to me and I am overwhelmed by my debt, tired of paying interest charges every month. I almost never use my card for the past year.
thank you to anyone who can help.
May 27, 2009 at 8:30 pm
I called my Capital One and told them I needed my interest rate lowered. I followed the script and was transferred from a customer service person to the “finance” department.
I was put on HOLD for nearly an hour only to have the person tell me that there was nothing that could be done for me even though I told them I would have to declare bancruptcy.
Any ideas from anyone that could help me get my rate lowered?
Thank you for your help!
May 4, 2010 at 3:55 am
I am going NUTS trying to find out HOW I can cash in some of my airmiles to obtain a $20.00 coupon for gasoline!!! I was told it was EASY to find and EASY to DO! But no such LUCK! PLEASE write me the information I need and direct me as to how to do this! OR PHONE me, (604) 856-1151 Address: #6 – 24330 Fraser Highway, Langley, B.C. V2Z 1N2
Thanks!
May 4, 2010 at 7:43 am
janis; http://www.airmiles.ca or call them – flip your airmiles card over – their number is on the back. Its easy.
July 15, 2010 at 4:17 pm
Hi guys -
If you have a perfect credit score and you are a longtime customer, credit card companies will actually lower your interest rate without you even asking. RBC called me up, thanked me for my business, and knocked 5% off my interest rate on my no annual free card.
January 24, 2011 at 2:27 am
I tried both scripts with PC Mastercard and escalated as well and got a big fat NO! The only thing I was offered was help IF I had no job and needed financial help, then they would make me apply to see if I qualified for help! Honestly, the WORST company ever, so I am aggressively paying them off so that I can cancel that card!
August 16, 2011 at 11:41 pm
TD Visa was the worst. I called them up and had a zero balance with them (they had been my oldest card) and I asked for a lower interest rate. They gave me some BS and said it was not possible to obtain a lower interest rate in Canada (liars!) so I closed that card down since I carry a balance on another card that I am trying to pay off. Currently I have a MC and carry a balance (being a student and working part time whilst paying all bills myself) but at least pay the minimum. I was able to go from having a 19.75% interest to a 12.9% with a $24/year fee (the savings are much more than $24). I was able to get them to lower it to 3.9% for me for four months, after which I will be back at 12.9% without any extra fees. I just explained I am a student working part time and looking to pay off my card. I know it’s not for a long time, but it sure as heck helps so much! I will never again go to a card that has such a high interest rate. I have good credit rating so as soon as I get a decent job I am going to switch to an even lower interest card with another company and transfer the entire amount to get out of this debt!
September 5, 2011 at 3:14 am
@ Sandra: Depending on how much total debt you have, sometimes it may be possible to get a consolidation loan with a lower rate than your credit card interest rate. Try to call the bank that issued the credit card in question. Banks are reluctant to pay off debt owed to another bank as it is too risky, but are more willing to help when the debt is already owed to them in the form of a credit card balance. Usually though, they might ask you to close the credit card if approved for a consolidation loan. And usually they have minimum amounts for installment loans, too.
@ Caroline: I went through the same thing with TD Visa. I got their Emerald card with prime + 7.75%. I used to have some missed payments a few years ago (just finishing university and all) but none in the past 3 years. They said the account gets reviewed automatically on its anniversary, it’s not the rep himself that has any authority in that regard. Prime + 7.75% isn’t a terrible rate either, compared to what else is out there. Let’s see if they’ll do anything about it (or rather, let’s see if the computer will decide I’m good enough for a rate decrease) in January 2012
November 8, 2011 at 6:58 pm
So I decided to give this a try, I have a CIBC Visa Aerogold 19.9% (10,000 balance), and a capital one gold mastercard 19.5% (400$ balance). Cibc was amazing, I have been with them for over 10 years, but only recently (over the last two years racked up a huge balance on my card-wedding, life changes, irresponsibility) had I been concerned with the interest rate I was paying, since I didn’t use it that much. My phone call was about 10 minutes long, they asked me what I would like from them, and I told them that I wanted the lowest interest rate they could give me, and the guy just lowered my rate to 11.99%. I’m not sure if this was actually the lowest rate I could have gotten, but I took what seemed to me a victory. I was offered a higher interest rate from the actual bank on a consolidation loan.
When I tried Capital One, it was a joke, they told me you can’t adjust anything unless you receive an offer in the mail. I’ve had this card for approximately a year and a half, and the balance is low enough that I can just pay it and cancel it, which I told the man. He then decided he would credit my account 60$, which I thought was pretty awesome.
I approached these customer service agents with extreme kindness, perhaps just try calling in and showing these CSRs a bit of respect and maybe they will just consider helping you out!