Requesting a lower interest rate
A lower interest rate on your credit card account
could be yours just for the asking.
That's right. In the competitive credit card industry, your card
issuer wants to keep you, the existing, charging customer. Heck, you don't even
have to have the best credit in the world. But you do have to request
the lower rate.
The worst that could happen is that the company says "no." In
that case, consider another card. Bankrate's search
engine can help you locate card deals from issuers around the country. When
you find one with a better rate, transfer
the balance from your high-interest card and then cancel
Many card holders, however, are finding that their requests for
lower rates are being approved by their exiting credit card issuers. So go ahead
The form letter below will help you request a lower interest rate
(and the elimination of your annual fee, too) on your current credit card. Personalize
it by entering your specifics in the areas in red.
You can print out this Web page and make your changes by hand or copy the body
of the letter and paste it into a document where you can make your changes on
If you prefer to see a .pdf version of the letter, click
here. Or you can get it in .txt format by clicking
here. (Copy the body of the letter and paste it into a document where you
can make your changes on your PC.)
Customer Service Department
Credit Card Company Name
City, State and Zip Code
Re: Request for lower interest rate on card
name account number
Dear Sir or Madam:
I have been a credit card holder with your company for the last
number years. My account is in good standing and
I would like to continue using it. However, I would like you to consider giving
me a lower interest rate on this account.
It has come to my attention that I am currently paying number
percent on my name of card while many other issuers
are charging their customers far less. Cite specific examples
here (you probably get several in the mail each week), such as: I have I have
received offers in the mail from your competitors who are offering with me a
lower APR if I transfer my Visa account. XYZ MasterCard charges 5 percent, while
ABC Visa is offering 4.8 percent.
I am also paying you a dollar amount
fee each year to renew my card. I would like you to consider eliminating or
reducing this fee. Again, if you have them, give specific
competing examples: I have received offers from other companies with interest
rates ranging from 0 percent to 2.9 percent for the first six months and no
In this paragraph, list additional reasons
why you deserve a lower interest rate. For example: I have paid my bills promptly,
have never incurred late charges, and have never exceeded my credit limit. Obviously,
only state what is true; your card issuer is well aware of your credit history
with the company.
For these reasons, not the least of which is my number
years as a loyal card name customer, I am requesting
a lower interest rate and asking you to waive my renewal fee. If you cannot
comply, I will be forced to cancel my card with your company and switch to a
credit card company that can give me better terms.
Please have a representative of credit card
issuer name contact me by phone at telephone number
or by letter at the address below to notify me of how much you can lower my
annual interest rate and whether my annual fee can be reduced or waived.
Thank you for your prompt attention to my requests.
Your Typed Name
City, State and ZIP code
-- Posted: April 6, 2004