Lower your credit card rates in under an hour

Every so often you may get a notice that your credit card rate is going up, and many times there seems to be no real reason for it. You didn't make a late payment or break any of the rules of the agreement, but the letter says your rate is increasing.

It's frustrating, to be sure, but there is something you can do about it: Ask for a lower rate. With typically less than an hour of your time, you can get a lower rate, and even if you only lower it a few percentage points, every little bit you save helps.

Asking for a lower rate

The key to getting a customer service rep to lower your rate is to have a good track record as a customer--meaning you always pay at least the minimum and you pay it on time. It also helps to have a great credit record and to have been a customer for a while.

Here's how to ask for a lower rate:

1. Call the customer service number on the back of your credit card.
2. When you get a customer service rep, say, "I've been a customer of yours for ___ years now, and I just received a notice that my APR has gone up to ___ percent. I also receive many credit card offers in the mail offering me much better rates. I want to stick with your company, but I need a lower rate or I'll have to cancel my card. What can you do to help?"
3. If you get a lower rate, great! If not, ask to speak to a supervisor.

If the supervisor still denies your request, hang up and try again the next day. You'll get a different rep and supervisor--and they might be more cooperative.

Still no luck? Go to corporate

If you're still getting nowhere, and you are determined to get a lower rate, you can take the aggressive route of Kiplinger reader Sam Sweet of Erial, N.J., who got three major card companies to lower his rates. Sweet was doggedly persistent, and he got his rates lowered. Here's how he did it:

• Get started saving by finding the best savings account now
• See all articles