How can I get my APR lowered?

by Manshu on October 6, 2008

in Articles

There are many different ways of lowering your credit card APR. I have seen some of those working in some cases and not working in other cases.

I think that is because lowering your credit card APR is a very situational thing and based on your current situation, you may or may not be able to lower your APR.

Here are some good ideas on getting your APR lowered:

1. Have a good credit history: This probably goes without saying, and yet a lot of people do not realize that you really do need a great credit history to get a lower APR. If you have a great credit history then you are likely to pay back your credit card bills and all the usual stories that you have already heard 4700 times.

More importantly, if you have a good credit history, your credit card company’s competitor’s will be willing to offer their credit card to you and there is a very real chance that you may take your business to them. That is what rings the bell for most credit card companies.

2. Do your research: So how do you know you have a high APR? You need to do your research and hunt for credit cards that will give you a lower APR, when compared with your current credit card. There are plenty of online resources that tell you which credit cards you will be eligible for, based on your credit score. Do a little bit of research and find a few options that promise a substantially lower credit card APR.

3. Call up your credit card company and ask them to close your card: This may sound extreme to you and I myself certainly know of many instances that this has failed in. But there are quite a few instances that it has worked as well.

So here it goes. Call your credit card company and ask them to close your credit card. When they ask, why do you want to close your credit card, tell them all the good things that you have been doing (making payments on time etc.). Then tell them that you recently pulled up your credit report and saw your credit history to be good and based on your calls to other credit card companies, you can transfer your balance at a lower APR to one of those companies.

If they want your business, then they will ask you to hold on and will transfer you to someone who can help you. If they do not want your business, then there is really nothing much that you can do.

Now, remember that sometimes even people with good credit scores are also not able to get their APR lowered.

This may happen if you are not a profitable customer.

If you pay in full, never buy an up-sell or insurance, then you are really not profitable for the credit card company and they may not be interested in retaining your business. That explains how some people with good credit are not able to lower their APR.

4. Be polite: You need to be polite to the customer service representatives that you are talking to. They handle hundreds of calls every day and if you make it harder for them, they will make it harder for you too!

These are some ideas that you can try out, to lower your APR. Since this is such a situational thing, there is no magic formula that works every time, so all the best and try your luck!

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