Credit Card interest

Viix

After analysing my credit cards I have discovered I have a few with very high interest rates.

Has anyone negotiated their interest rates with their credit card company and succeeded? If so, could I have a few pointers please? I have no idea where to start trying to sort my mess out...

middleclassbutpoor

I did a long time ago with Barclaycard. I just called them and explained that I had been a longstanding customer and felt that their interest rates were too high. They put me down to 7. something % apr which is what I still have today.

I have a clean credit record though..so not sure if this would work if you didn't or whether in fact it does work at all these days.

datlex

My rate with Debenhams is high. They don't seem to understand that 30% of 0 is 0 as is 20% or 40%. (I pay in full!)

Viix

Thanks for the replies.

I guess it can't hurt to get in touch with them and ask... worst they can say is "No" really.

timefortea

I tried it with HSBC. They said no, but I didn't lose anything, so I'd still say it's worth a try.

National_Debtline

Hi Viix


It's unusual that a creditor would reduce your interest rate, unless they could see you could not afford the minimum repayments. If you ask it's likely they'll want you to complete a statement of affairs (SOA) so they can see if you need help. Be aware if they do reduce your interest rate it could affect your credit file as they may mark it as an arrangement in place.


I would recommend completing a SOA and posting it back on the board, you can complete one here http://www.stoozing.com/calculator/soa.php. Just make sure you use the format for MSE button. The board is great place to get hints and tips on how to get your debts paid off quicker.


It's also worth being aware of some new rules introduced by the Financial Conduct Authority (FCA) on how credit card companies are expected to help customers who can only afford their minimum repayments. You can find more about this here https://www.fca.org.uk/news/press-releases/new-credit-card-rules-introduced-fca.


Best wishes


Susie
@natdebtline

Viix

Thank you Susie that is really helpful info and gives me plenty to think about. I have not contacted my credit card company yet but will look into this info before I do.

Thank you very much!

Sammyc77

First post on the forums, been reading DFW for a while and have just started on my journey to be debt free.

Anyhow Viix, I registered as wanted to let you know that Barclaycard reduced my interest rate from 19.9% to 9.9% after I called them and requested a reduction last month. I explained that I have been a customer for years and that I was considering a balance transfer to another card with a better rate. The call centre transferred me to somebody else (maybe their retentions team?) who asked if I wanted to cancel my account. I explained again I was thinking about transferring my balance, and he immediately agreed the reduction on the current balance.

So definitely worth a go Viix!

Viix

Thanks Sammyc77. Barclaycard is one that I have with a high interest rate and did manage to balance transfer a portion of my balance to a lower rate card but still not happy at the high interest rate on the remaining balance.

I will think about if I request a reduction in rate or not but thank you for your input and good luck with your journey!