Getting your credit card interest rates down

cymruchris

It happens in loans often where you see a headline rate of 2.8% APR - you apply - get approved at 13.9% APR - as you're not one of the 51 percent that qualify for the headline rate. In terms of a loan - it's fairly straightforward - you either go for it - or you don't - it's over a fixed period.

In terms of credit cards, a continually revolving credit line with no set end-date - where the headline rate is for example 19.9% - but on application you get offered a card at 29.9% due to a more limited financial background or adverse information - how would you go about achieving the headline rate of 19.9%? Do credit card lenders generally review account performance, and then offer the lower rate when they feel the time is right? Do they make you apply all over again to see if you qualify for the lower rate? Or does it take regular calling and badgering of a call centre to see if you qualify for the better rate? Can't really see much on google that addresses this.

I know with Barclays credit building card - after 12 months of on-time payments the rate drops automatically - but haven't come across what happens with other banks.

I'd be interested to hear from anyone that's experienced an APR reduction (aside from Barclaycard) to the banks headline rate after initially being offered a higher APR. 

[Deleted User]

I can't think of any lender that doesn't drop rates for the right accounts, based on a mix of risk and profitability.  Though it is rarely specifically to the headline rate - it could more or less than that.

Dandytf

from previous experience Barclays had very good apr reduction Cards when I called to cancel my Initial Card.

floppydisk1

With credit cards APR should really be irrelevant , on rare occasion that you don't clear in a month interest will be not a lot and cleared in month 2 ( ideally ), anyone needing credit card as a medium ( or long )  term borrowing should really go for a loan as rates will ALWAYS be lower by some margin. 12 % on a loan is considered really really high , yet inly handful of credit cards offer those rates and people who qualify for those rates can get loan for less than 4 %...  Some bad credit ( read high interest ) card issuers do reduce their ( already sky high ) rates to some extent over some time, but as long as you pay every month in full it should not really matter.

cymruchris

floppydisk1 said:

With credit cards APR should really be irrelevant , on rare occasion that you don't clear in a month interest will be not a lot and cleared in month 2 ( ideally ), anyone needing credit card as a medium ( or long )  term borrowing should really go for a loan as rates will ALWAYS be lower by some margin. 12 % on a loan is considered really really high , yet inly handful of credit cards offer those rates and people who qualify for those rates can get loan for less than 4 %...  Some bad credit ( read high interest ) card issuers do reduce their ( already sky high ) rates to some extent over some time, but as long as you pay every month in full it should not really matter.

Agreed - I pay everything in full each and every month - but I still want to be on the best APR’s in case life ever throws an emergency. I’d rather have an emergency at 19% Apr rather than 29 or 39% apr. 

I have a recent mainstream card that had a headline rate of 19.9 - but my account was allocated 29.9. I know where I’d rather be so seeing whether people have experience of apr’s dropping through use, by asking or by threading to close accounts. It’s not going to go down immediately - but as I’m working towards a better credit file - I do want to be at the normal customer end of things rather than being labelled adverse forever more. 

floppydisk1

If it's just in case credit history rebuild thing , I'd prefer prime credit card on higher APR to subprime card on APR that might come down in say 12 - 18 months... With that time on high APR prime card you are much more likely to be accepted for a decent  APR  credit card from a prime lender ( Lloyds can go as low as 10 % ) compared to subprime card that may lower APR within that timescale ( also subprime lender will unlikely give you limit high enough to make a real  ££ difference in APR anyway  ) . I might be mistaken but as far as I am aware it's mostly subprime lenders who start high and then reduce their APR to keep  you as a customer, as by that time you might be eligible for a card from a  better quality lender. I certainly don't know of any lender who drops their APR on 29 % or lower ( as most of % dropping happens on cards of 39 % +..  ) 

cymruchris

It's a prime card that I'm referring to - with a starting APR of 29.9%. The headline rate is 19.9%.