The Ways to Reducing your Credit Card Interest Rates

It is no secret that aside from the annual fee, the way banks make money from credit card accounts are the APRs on the accounts. The lower the interest rate on a credit card, the more money a consumer will pay to borrow cash using that credit card account. This leads many consumers into wanting to lower their APRs. Thinking that banks are big bully corporations, consumers often hire debt consolidation companies. These debt consolidation programs tend to have an adverse affect on consumer credit scores. But what if there was a way to reduce credit card account annual percentage rates without actually harming credit scores or hiring a debt consolidation company. Well, the good news is there is!

The big issue with the general thought about banks is that people think banks are bullies that are not willing to help Americans. Although, I love to agree with consumers, I have to say that this is not at all the case. As a matter of fact, this couldn't be further from the truth. Although most banks are large corporations that do follow a corporate ladder, they're also much like a mom and pop store at the end of a busy block. Without the Americans buying into the products that banks have to offer, the banks would have no reason to be around. This is what makes banks willing to work with consumers and in most cases all it really takes is a telephone call!

Most major banks have special departments that are there specifically to retain upset customers. Now, I'm not advising anyone to call the bank that issues their credit card and go off on a tangent at all. The best way to negotiate with banks is politely tell them the honest way that you feel. However, before you get started, it is best to get prepared.

Preparation is simple. First, consumers should get all of their credit card statements into a pile and grab a pen and paper. Make of list of the credit card accounts from highest annual percentage rate to lowest. The list should include the credit card account number, annual percentage rate and customer service phone number. Once Americans have this list compiled, it is time to go on to the next step.

At the top of the list, people should call the bank that issues the credit card account that they carry with the highest annual percentage rate. When the call is first made, in most cases, people will have to navigate through the automated system to get to a live representative. Once on the phone with the live representative, people should say something to the effect of “Hi, I was looking over my credit card account statements and noticed that this account has the highest APR by far, I love your bank and the rewards offered with this credit card account but, I just can't see paying this interest rate with so many other options. Is there anything you can do to help me with this?”.

At this point, the customer service representative will place the consumer on hold. When the customer service representative comes back they will have one of the following answers:

Answer 1: Congratulations, your account qualifies for a lower annual percentage rate, it will be ___ and I will go ahead and activate that now!

Answer 2: Unfortunately, your account does not qualify for a lower APR because ______. (In most cases it is because of past late payments)

Answer 3: Unfortunately, this is not my department, let me get you to someone who can help you with that.

If you get answer 1, thank the representative and end the call. If you get answer 2, thank the representative, end the call and start working on ways to fix whatever defaults may have been explained to you on your account. If you get answer number 3, follow all the same instructions with each new representative until you get answer 1 or 2.