Today’s money hack talks about how you can lower the interest rate on your credit card debt by doing a bit of market research.
As part of a short series of negotiation techniques for lowering the interest rate charged on your outstanding credit card debt, we have already shared that the first step is to simply ask for a reduced interest rate. However, in case that does not result in immediate acceptance by the credit card company, you can use a few negotiation techniques, such as:
- Leverage your loyalty to the credit card and request the lower interest rate as a reward, and
- Emphasize your overall good financial behavior, including your credit score and credit history.
Today we share the fourth tip:
Get credit card companies to reduce their interest rates by sharing some market research about competing credit cards that offer better rates.Any other credit card company willing to offer you a lower interest rate? Use that as a negotiation tool to lower the rate on your current credit card.
Of course, you need to do some window shopping beforehand to see which credit card companies offer better interest rates and note the actual difference between the rates. Do convey your willingness to stay with your current credit card provider simply for whichever reason; perhaps you want to retain your current credit card, despite the debt, because:
- You want to be a loyal customer, or
- You enjoy the level of customer care they offer to you,
Or perhaps you have some other reason in mind. The bottom line is, your credit card company must know that even though better deals are available in the market you wish to continue doing business with them if they make their interest rate more competitive, by either lowering it to match or beat another credit card’s interest rate.