TAMPA BAY, FL -- Consumers hit rate reduction heaven the first time we reported on credit card companies last year. Constance Phelps told us, “They said you have been such a good customer we will take off 5 points.” A success story we've heard again and again.
What a difference one year made! The current credit crunch and massive losses led some banks to raise revenue in the form of higher credit card interest rates and fees.
“It is definitely harder to lower the interest rates, the creditors just are not willing to lower them by calling in.” According to Consumer Credit Counseling's Linda Pickler.
This week I traveled to the Shops at Wiregrass and asked shoppers like Manny Lopez to try and talk their credit rates down. “I am a good customer of yours but I have received several offers in the mail from other companies,” Manny said.
Before Manny hung up his bank offered to drop the 9.99% fixed rate on his visa to a 7.99% variable rate meaning it could fluctuate higher. Manny says, “They offered me 2 percent.”
The negotiation stands a better chance if you have a solid payment history. Even that is no guarantee as Marcy Mojica found out. “That's the lowest rate they have right now.”
It may now be more difficult to talk down your rate but it's not impossible. John Wrentmore worked the script's magic. “I was wondering if I could get that lowered because I keep getting stuff in the mail and with lower annual percentage rates.”
By the time john said good bye Bank of America knocked 4% off his APR.
Finally I gave it a try on my own Visa card. I made my pitch and a minute later was transferred to a supervisor. Capitol One put me on hold, reviewed my payment history and came back with an offer. “Your telling you can lower my rate from 13.9 to 9.9 today? Wonderful I will take it. That’s great.”
Here's the key, ask for a supervisor if you get turned down don't be afraid to mention you'll consider closing the account and transferring your balance to another card with a lower rate.
Now if you want to give it a shot just follow the following directions.
Hi, my name is.......................
I'm a good customer, but I've received several offers in the mail from other companies with lower annual percentage rates. I really want a lower rate on my card. Can you help me? If the answer is no, ask to speak to a supervisor. If the answer is still no, ask for another supervisor.
Also don't be shy about letting the company know you would consider closing the account unless they can lower your rate.
