While it is true that negotiating credit card interest rates has become much harder than a few years ago, there is still some room for hope.
Consider the following tips: Take action if you notice a sudden spike Depending on your contract, some companies may have clauses outlining "trigger points" that could cause the interest rates to increase.
Common events that could trigger the rate increase include late payments, missed payments, and over-the-limit transaction among others.
If the event was beyond your control you may want to bring it to your provider's attention to discuss the possibility of an amicable solution.
Certain natural disasters are more opportune for such negotiations.
For example, after Hurricane Sandy many major banks and credit card companies announced that they would waive late fees and other penalties for those impacted by Sandy.
Read your credit card statement with a toothcomb I estimate that over 60% of consumers will not re-confirm financial calculations on their statements, nor will they tally the interest rate and finance charges with the original contract terms.
A simple check could save you thousands of dollars every year.
If you are unfamiliar with financial terms, a quick online search will help you understand Annual Percentage Rate (APR), late fees, penalties, billing cycle, grace period, and various other terminologies that could impact your monthly payment.
Knowledge is power It is not enough to know what your provider is charging.
Before you negotiate with your credit card company, it would be very helpful to know what competing providers are offering to individuals with your credit score.
Work with your credit card company Now comes the most intimidating part of the journey.
Armed with research and basic knowledge of financial terms, you are better prepared for the first conversation with your provider.
The process is not easy and you may have to request your customer service representative to escalate your call to a higher level supervisor.
At times, you may have to make several calls and speak with multiple layers before your case gets any attention.
Though frustrating, if you are able to negotiate even a small reduction in your APR, you could end up saving thousands of dollars every single year.
Negotiating is harder than it used to be.
Don't expect your credit card rates to drop to zero percent.
The more reasonable you are with your expectations the more likely it is that they will be able to accommodate your request.
Get an ally If your unique situation qualifies you to seek the assistance of a consumer advocacy group or a media network, you may be in a better position that if you were to negotiate by yourself.
One caveat, though, you should always do your research before working with any agency.
The Federal Trade Commission (FTC) regularly posts advisories warning consumers about fraudulent companies.
You can read more about these advisories at ftc.
gov.
Shop around If you fail to negotiate a rate reduction, not all is lost.
Compare interest rates offered by competing providers and try to transfer your balance to a lower APR credit card.
Other options may include credit unions, short term low interest government loans, and other financial assistance programs offered by non-profit organizations.