How to Lower Your Credit Card Interest Rate Quickly

Try this technique out. It takes a little work, but may result in a significantly lower rate. Pay off as much of your balance as you can without going into further debt or risking any sort of financial problems.

Immediately after making this payment, call the credit card company's customer service hotline. Explain that you've just made a substantial payment to pay down your balance and that you are extremely annoyed with the high interest rate your card account has -- you've received 0% introductory APR offers in the mail, and are very tempted to just pay off this whole account and close the card out. Say you'd like to go ahead and close the card right now.

"Can I pay off the remaining balance over the phone?" you should ask.

At this point, your bluff will cause the customer support person to refer you to someone higher-up, usually in a division called Customer Retention or Account Retention Services. Explain the same thing to this new person. Say you feel like the high rate is a rip off and that you are getting tons of 0% and low-interest rates in the mail. Why keep the card at all? Make it very clear you are prepared to pay off the whole balance right now.

They will make you an offer, usually a lower interest for a period of 6 to 8 billing cycles. If this is exactly what you want, take it. Their initial offer may be for 9.99% or 8.99% -- ask if he can do any better. Say that still seems like a lot more than what the other credit cards are offering in the mail.

At this point, you should get a rate in the 2.99 to 5% range. If this satisfies you, take it. Ask if there are any additional fees or "catches" -- make sure there aren't. Don't be overly grateful when you get the new rate. Just say, "I guess I'll keep it then, as long as I don't have to pay an annual fee."

Ask for a copy of your new cardholder agreement to be mailed to you. (Verbal agreements don't mean much.)

Congratulations. You now have a significantly lower rate and a credit card issuer that has bent over backwards to keep your business.