Facing a rate increase? Here’s how to talk it down

Chicago Tribune

If your credit-card company has raised your rate and you can’t pay it off immediately, one option is to call the issuer and ask for a lower rate, particularly if you’ve been a long-time customer.

“Say, ‘I’ve been a customer for X amount of time, and I’m looking at competitive offers,” said Bill Hardekopf, chief executive of LowCards.com, a credit-card Web site. “‘I’d like you to roll it back to X rate.’ “

Credit-card companies don’t want to lose customers because “the acquisition cost is too high,” he said.

In 2006 the Chicago Tribune published a script aimed at helping consumers negotiate a lower credit card rate. This reporter successfully used it to bring down the rate on a credit card to 9.99 percent from 24.99 percent.

It goes like this:

You: “Hi. Can you tell me what my current interest rate is?”

Operator: “Your interest rate is X percent.”

You: “Hmmm. I’d like you to lower my interest rate now, please.”

(Don’t say another word until the operator makes a move.)

Operator: “OK, I can lower it to X percent.”

You: “That’s not enough, but I’ll take that for now. Thanks. I’d like to tell your supervisor how helpful you’ve been. Could you pass me over?”

If you’re able to get the supervisor on the line, mention that the operator did indeed help you, but then repeat the script.

In a few months call back and repeat the process.

There is a potential pitfall, according to Bankrate.com: Your FICO score could be dinged if your credit issuer considers that an application for credit and pulls your credit report and score.

“There is a slight risk, but the risk is worth taking if they’re increasing your interest rates so high,” LowCards.com’s Hardekopf said. “If they’re going from, say, 10 percent to 17 percent, go for it.”

Looking for credit-card options with lower rates? Lowcards.com, Bankrate.com, Credit.com, Indexcreditcards.com and Cardratings.com, are good places to start online research.