Has anyone successfully negotiated down credit card APR? Tips?

[Anonymous]

I'd like to try to negotiate down some high APRs. I have a decent credit rating but high balances and it would be a big help in paying things off if I could get the rates down. I've read online that you can do this, but has anyone done it? Please share your tips.

Thanks!

[Anonymous]

I did not have luck with that. During the recession I had a few late payments and they jacked up all three of my cards to 30%. So that of course spiraled out of control. I then went to a company called Greenpath and they negotiated my APR's down to 1% each. BUT, if you go that route you can no longer use credit cards while you pay off the cards. It's more of a pay off your debt program where they try and minimize your expenses. Everyone told me the CC's would negotiate the APR with me. They wouldn't help me to save my life.

[Anonymous]

Thanks, PP. I appreciate the response. Sorry to hear they would not negotiate though.

[Anonymous]

I often get offers of 0% APR for 18 months. Can you just find a similar offer and transfer?

[Anonymous]

Definitely find a balance transfer rather than negotiate. I queried my longstanding CC (the first one I got as a college student 25 years ago) about a lower rate because I got so many balance transfer offers but figured I should stay put if I could. They not only denied it but then they cut my credit limit. I destroyed the card, paid it off, and never used it again. (It took a while, and I still have credit card debt, so I'm not a magician or a preacher here, just wanted to forewarn you that the CC companies are not your friend.)

[Anonymous]

Get a decent offer and then use it as leverage when your talking to the CC rep. Remind them how you pay you balance every month, how you've never late on your payment and bottom line your a good customer ....then mention that CC company X is willing go give you a 7% IR and a $5K credit line. If they can not match it, let them know that you'll bolt.

Also, keep in mind that when you're negotiating for a better rate that usually a supervisor i(and/or other reps) are listening in on the call...they mention that the call will (may be) recorded for training purposes which is a way that they can legally listen/record your conversation.


You do have options if you donn't get a good rate....good luck

[Anonymous]

From what I hear, you are more likely to be successful at this AFTER you've paid off your balances. The companies have little incentive to lower the APRs when you already owe them.

[Anonymous]

I've done it, but with credit unions. Not sure how it would work with another card but I don't really use those. I have a 9.99% APR w/ PenFed Visa and wanted the same 8.99% APR that Navy Federal gave. They will do it if you have a strong banking history with them and you use your credit responsibly. They want your business. If not, do a balance transfer and get the lower rate.

Even if you pay a fee to transfer that is a better option than paying more money over the long run for a higher APR. There are great promos going on now for balance transfers because its the beginning of the year. I know Navy Federal has 0% APR for 12 months, PenFed 0% APR for 18 months.

[Anonymous]

Credit card companies make their money from you paying bit by bit, with their little fees tacked on. They dont like it when you dont accrue APR charges and they cant make money from you. They make money from merchant transaction fees but primarily from your interest rate. Threatening to move a balance that could accrue interest will get the attention of a financial institution that values your dollar. Not sure how easy it will be now with all the new restrictions and tight lending practices that are in place but its possible.

[Anonymous]

Yes -- talk to them and ask to speak to a supervisor to get the answer you want. We did -- it worked for us. Good luck!