Reducing interest rates

debtfreeoneday

Ha anyone every rang their CC company and asked for a reduction in interest rate?

What did you say and does this go against you on a credit file at all?

We currently pay £80 a month of which £40 goes in interest and I just wondered if I asked, if they would reduce it?

latecomer

Well if you dont ask they certainly wont.
While there is no harm in asking, I suspect if you are meeting your min payments each month they wont be interested. If you have missed/late payments then they might be more likely to reduce the rate. This is just my personal opinion though.

Zapp_from_Planet_Zogg

I regularly call my card company (every 6 months) to ask if there is anything 'better that they can do for me'.

Truth is, the longer you have been with the card company the more willing they are to review their rates.

Don't expect anything out of the front line account managers - you need to be put through to cancellations. Be nice and my experience is that they will look after you.

To give you some idea, I have had credit limits substantially raised, interest rates reduced from 14.9% to now 6.9% for life and short term cashback deals - 3% on all purchases, no monthly cap. Each time I call them I am also offered a 0% 12 month balance transfer, with no fee or a no fee lifetime balance transfer with a low rate (usually around 5 or 6%).

You are less likely to get a good deal if you regularly dip over your credit limit, never use the card or miss payments etc.

This doesn't touch your credit file - after all, why should it? You are simply re-negotiating your commercial contractual terms with them. CC firms only bang your credit file if you miss payments or are continuously over limit.

terafarma

debtfreeoneday wrote: »

Ha anyone every rang their CC company and asked for a reduction in interest rate?

What did you say and does this go against you on a credit file at all?

We currently pay £80 a month of which £40 goes in interest and I just wondered if I asked, if they would reduce it?

Yes, is the answer. Had a 13months 0% with Virginmoney which ended in February, rang to close it after paying it off and was offered a further 0% on purchase and balance transfer for 6months.

However, soon after the deal was offered, they raised the standard interest rate applying to the card to 17.9% from 15.9%. I called their CS number, explained to them that I've been a long standing customer with a blameless track record with them and would appreciate it if the interest rate was reduced, .... The lady's comments were,"let's see what I can do for you". The standard interest rate was then reduced to 14.9% from the previous 17.9%.

I honestly do not think it has any effect on your credit file/score, that is, asking for a reduction in interest rate from the provider, as long as you've not defaulted on any repayments to your credit card commitment.

I have in any-case since cancelled the Virgin (MBNA) card as I no longer have any need for it.

The simple truth is, if you don't ask, you don't get. You can only be given one answer, yes or no. And the Yes could do you a whole load of good. I'll say to sum up courage and give them a call and hear what they have to say.

Good luck.