Negotiating lower credit card interest rate

LK811

Hi everyone,

First poster here   I was wondering if anyone has successfully contacted their credit card provider to negotiate a lower interest rate?

My 0% interest deals have come to an end and 0% balance transfer offers don't seem to be available to me at the moment. Half my payments are being eaten up by interest. I have less than £15,000 debt overall and no savings. I've searched the MSE site but have been unable to find specific advice re: this.

Any pointers/advice would be most welcome and appreciated!

Willing2Learn

Is this down to the impact of COVID-19?

You can ask for either a three month freezing of interest or a three month payment holiday during the crisis.   But you would need to make an official request first....

And welcome to the forum 


If you are struggling in general, then we will need to see your completed SOA.  Use the calculator linked below and then post it up in a new thread on the Debt-Free Wannabe board.

https://www.lemonfool.co.uk/financecalculators/soa.php

eddddy

I guess you could try something like "I've been invited to apply for a credit card with a balance transfer apr of x% - before I apply, I was wondering if you'd be prepared to match that rate?"

But you probably need to be very careful about what words you use. I've of heard people who ask CC companies for interest rate reductions, and the CC company have interpreted it as... you're in financial difficulty, and finding it hard to cover the current interest payments.

So the CC company flag you as being in financial difficulties, cut your credit limit to stop further spending, and start asking about repayment plans etc,

So if the CC company agent asks questions like "are you having trouble making your payments", I guess you have to clearly say "no - I'm just shopping around for better deals".

D3xt3r5L4b

I thought the time for using COVID as an excuse to not pay your bills had passed?

Willing2Learn

I think it can be made any time, but is only applicable for the three months as stated by the FCA.  I may have to check that though...

Willing2Learn

It just says the temporary measures start 14/04/2020 and for three months duration...

digalumps

Yes of course you can try and negotiate a lower interest rate in exactly the same way as you could ring up HMRC and try to negotiate a lower rate of income tax (this is currently set at 20% but you could perhaps offer 15% and see if they will meet you in the middle)

In both cases your chances of success are zero but you can always negotiate

Se1Lad

I managed it once in 2013 with the Halifax Clarity Rewards credit card.  Back then you got one of 3 rates when you applied - 12.9%, 17.9% or one in the mid 20s.  I got the 17.9% one and after a year I called them asking if the rate could be reduced.  I was expecting a no - and was rather surprised when they said yes.  I’d had the card a year and always paid it in full each month.

LK811

Willing2Learn said:

Is this down to the impact of COVID-19?

You can ask for either a three month freezing of interest or a three month payment holiday during the crisis.   But you would need to make an official request first....

And welcome to the forum 


If you are struggling in general, then we will need to see your completed SOA.  Use the calculator linked below and then post it up in a new thread on the Debt-Free Wannabe board.
 

Thank you for the info and welcome Willing2Learn! :-)

LK811

eddddy said:

I guess you could try something like "I've been invited to apply for a credit card with a balance transfer apr of x% - before I apply, I was wondering if you'd be prepared to match that rate?"

But you probably need to be very careful about what words you use. I've of heard people who ask CC companies for interest rate reductions, and the CC company have interpreted it as... you're in financial difficulty, and finding it hard to cover the current interest payments.

So the CC company flag you as being in financial difficulties, cut your credit limit to stop further spending, and start asking about repayment plans etc,

So if the CC company agent asks questions like "are you having trouble making your payments", I guess you have to clearly say "no - I'm just shopping around for better deals".

Thank you eddddy! That's good advice, as I was indeed asked about being in financial difficulty when I called HSBC and asked to speak to someone about the possibility of lowering my credit card interest (after being an HSBC customer for nearly 30 years!). After having to repeat myself and being sent all round the houses they eventually said I would have to send a letter request to my local branch.

So I may try this and see what happens!