Credit Card APR reduction?

Question

Has anyone ever had good results when asking a cc company to reduce their intrest rate, or do a debt negotiation? (example: an APR of 19.99% that was reduced... or a balance of $3500 negotiated to $2900 and paid in full) If so, which company was this with? I am looking to do this, and want to know my chances of success.

Answer 1

The interest rate always can be negotiated. It's a regular practice. Call them and say that you opened an account with another credit company that offered you lower interest rate, and now you want to transfer the entire balance there.

Answer 2

I have had success with the APR reduction. I wrote an article that summarized the steps I took to reduce my rates. I overspent while in college, which is why I had debt in the first place.

If you want to settle, make sure you know the risks. If you owe $3500, then it is unlikely that they will settle until you have fallen several months behind. By then, your credit will be ruined and you will likely owe over $4000 due to interest and fees.

By the time you settle with the collection agency, the balance will be $4500, and you will have a hard time settling for less than $2,000. You will only save about $1,500, of which that amount will be automatically reported to the IRS as forgiven debt, which is taxable as a form of income. In the long run, you will have severely damaged credit, and after taxes, you may have saved about $1,000.

What is worse is that if you use a debt settlement company, their fees will likely approach $750. If you do the math, everyone wins but you.

Try this plan that worked for me. I teach people everyday to do the same thing. I appreciate receiving feedback on how it works for you!

Answer 3

I have no personal experience with this, but I have heard of people being successful in negotiating APR reductions. I've never heard of reductions in the amount owed though.

I would call the credit card company and tell them that a competitor has offered you a lower rate. Cite that you have had a long history with them (your current credit card bank) and that you would like to know if there is anything that they can do to reduce the APR. They may drop it a point or two. I wouldn't expect them to go down to 9.99% from nearly 20% though.

Good luck.

Answer 4

Hi Tricia!

If your payment history is good, then you could probably negotiate lower a APR by simply stating that you've received an offer in the mail for a lower interest rate and would like to provide your current creditor the opportunity to beat it.

Negotiating for lower balances however, may not happen and will cost you in the long run. They'll mark your credit history as settled for less than the full amount or some such phrase. However it's worded, it will drop your credit score. Remember: the higher your credit score, the lower your interest rate. Your lower balance may cost you more in interest for other credit such as a home loan.

I hope this helps!

Good Luck!

Anne

Answer 5

I have had success in asking for interest reductions. I was told no at first but I said I would close my account with them and was then told my APR would be reduced. If you plan on negotiating a balance they will close your account if you are able to work something out.

Answer 6

I have asked Capital One and Target each for interest rate reductions and got them. The thing with Target was they only do it once for the life of the account, so I got a new credit card and transferred the balance. They only get used for emergencies.

Careful asking about debt reduction because they are likely to suspend or cancel your card and you will still have to pay off the balance.

Answer 7

These negotiations are best done when you have a low balance. They are making money off of you when you have a high balance and it is much more difficult to try and convince them to lower the amount of money they are making off of you.

Answer 8

you in all threat will no longer be waiting to diminish that APR pertaining to to that categorical mastercard. You in fact have 2 recommendations of coping with it: - acquiring a decrease pastime value card for stability transfers, despite the fact which you may determine you extremely repay the debt interior the "grace" era laid out in utilising the given mastercard employer. in case you fail to realize this, your new card will maximum probable entice comparable value of pastime. the way it works, the enjoying cards with an annual club value many times grant decrease pastime value to their shoppers, and those without club value, ingredient that into their efficient value of inerest. - acquiring a private mortgage, at a series and a plenty decrease pastime value. despite the fact that, the glaring capture of this consists of the visual charm of you having no mastercard debt, consequently putting greater on your new mastercard, even with nonetheless paying the previous card debt, which now's subsituted by utilising the non-public loan. it extremely is the greater value-effective decision whilst you're making plans to be desciplined, despite the fact that, if reckless, it may desire to land you in greater debt, consequently teach to be greater extreme priced.

Answer 9

% YES...many times...after these cards age they have a way of moving their % up...well I pick up the phone and threaten to quit...they always back down. If you have good credit..YOU are in the driver seat!

Answer 10

Be firm but nice, you should be able to get your APR down though they may dilly dally.