How To Get A Lower Interest Rate On Your Credit Card

Dagmar Prugler | April 10, 2020

Strategic financial planning is key to any budget. Whether you have a reserve fund for when times get bad, diversifying your investment portfolio or even taking advantage of promotions banks have to offer, there are always opportunities for you to save.

At Shoreline Realty, we strive to provide useful information to our friends and clients to better their financial situations. Knowing your time is precious, we want to make important information relevant to your current situation available and easily digestible. This is why we want to share with you one “secret” way to help you save money.

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Most people we talk to are currently concerned with the way this pandemic will affect their way of providing for their family and loved ones. Recently, the Federal government is providing various subsidies to help Canadians manage their financial obligations with the banks following suit by providing deferred payment options for your mortgages or credit card debts.

However, keep in mind that deferred payments will only add to your debt load down the road. A helpful tip regarding managing your finances which banks do not necessarily promote too often is not to lower your payments by deferral but by sourcing lower interest on your current debts. 

Various credit card companies offer special rates for a limited time, but unless you call and ask, the information is not readably available.

For example, you might have an outstanding credit card debt of $1,000 with Bank A at an annual interest rate of 20%. Bank B might allow you to transfer the $1,000 onto a credit card you already have established with them at a 0.99% interest for six months. Therefore, if you have a credit card which has a high revolving interest rate and you can transfer the amount to another credit card with a lower or no interest rate promotion, then that would be a better option for you at this particular time.

SAMPLE SCRIPT

YOU: Hello, my name is _________, and I've been a loyal customer with (Banking Institution) for (number) years.

Over the years, I feel as though I have been an outstanding customer and I thoroughly enjoy doing business with you. The purpose for my call today is to see if I might have the option to get a lower interest rate on my credit card. Would that be something you're able to assist me with?

This can go one of two ways. They can either say "yes" or "no". If they say "yes", continue the conversation and see what your options are. If they say "no", continue following the script.

BANK: Sorry, unfortunately we won't be able to assist you at this time.

YOU: Would it be possible if I could speak to a supervisor to discuss my possible options?

BANK: Yes, one moment please.

Put on hold which feels like forever...

BANK: Hello, my name is _______ with (Banking Institution), how may I assist you today?

YOU: Hi ________, my name is __________, and I was looking to arrange a lower interest rate on my credit card which I have set up with you, do you have any ongoing promotions I can take advantage of or arrange something new?

The conversation should naturally progress from this point forward. You will either have the option to take advantage of an ongoing promotion you did not know about or arrange for something new. There is still the possibility of not having any benefit coming out from this but at least you tried and took the time out to investigate what your bank is offering. From this point you can decide whether it makes financial sense to continue working with this bank or closing the account.

Please keep in mind not all banks offer these promotions and if they do, it might only be during a certain time of the year. Give your bank or credit card company a call and see if they can lower the monthly interest rate for you by using this technique.

We are also aware this option may not be suited for everyone. Please talk with a trusted professional financial advisor first to see if this option is suitable for you.

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About the Author

Dagmar Prugler is the founder and Broker of Record at Shoreline Realty Corp., Brokerage. With over 35 years of industry experience, she is able to help clients from all walks of life as they pursue their real estate dreams.

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