So you’re taking the first steps in paying off your credit card debt and you’re looking for ways to save money. Well I’m going to put you on to a tip that a lot of people don’t know. Credit card companies do, at times actually lower your interest rate. I’m not talking about when they send you those balance transfer offers at 0% for a limited time. I’m talking about the interest rate on your existing balance and for new purchases. The thing is though they won’t ever announce that. You have to call and ask for a decrease. A five minute call might save you hundreds of dollars a year in interest.

Before you call them, take a look at your last credit card statement or log-in to your online account and find your current interest rate for purchases. To help you locate your rate on your statement, look for something like in the picture below:

Take a note of what your rate is for all of the credit cards you have. If you have more than one credit card I would recommend you start with the account you have the best relationship with. So the one you’ve been with the longest, most consecutive on-time payments, highest credit limit, etc. Call the customer service number and explain to them that you’ve been looking through your credit card options lately and realized that their interest rate is among the highest you have of your credit cards. Let them know you would like to continue using them but the interest rate is too high and you’re thinking of moving your balance with them to another card.

There is no guarantee they will even lower your interest rate at all but you have absolutely nothing to lose. They’ll be able to let you know right then what they are able to offer you. If they are able to reduce your interest rate that’s great! Don’t be afraid to ask for a bigger decrease. So for example, if your current rate is 22.99% and they are able to decrease it to 20.49%, tell them you appreciate it but ask if there is a way they can get you closer to 17%. Never hurts to ask. If they aren’t able to lower your rate don’t worry. Try again in another month or so. Keep paying on time and keep trying. Persistence does pay off.

Here is an example of the effect a lower interest rate could have:

The difference in this example is about $11.30/month. It might not sound like a ton but over 1 year that’s a savings of about $136. If you have multiple credit cards and you’re able to get this same saving that’s several hundred dollars each year. Looking for more tip to pay off debt? Click here where we discuss it further.

Did this work for you? Let me know!