Are credit cards open to APR negotiation?

BrotherUuurgh

A bit like how they are open to increasing your credit limit, are they equally open to negotiating a lower interest rate? I don't think I've ever heard of this before, and by that I've maybe answered my own question, but it's a curiosity I wanted to explore anyway.

Will they negotiate? Will just asking the question leave a mark on my report? What's the deal? Just trying to learn. 

Thanks 🙂

400ixl

Simple answer, No.

DullGreyGuy

BrotherUuurgh said:

A bit like how they are open to increasing your credit limit, are they equally open to negotiating a lower interest rate? I don't think I've ever heard of this before, and by that I've maybe answered my own question, but it's a curiosity I wanted to explore anyway.

Will they negotiate? Will just asking the question leave a mark on my report? What's the deal? Just trying to learn. 

Many products are a fixed interest rate and everyone with it outside of any introductory offer are paying the same rate. 

In principle they could, but the only time I've heard of them negotiating was with persistent debt where some did offer to reduce the interest rate in exchange for the card being closed.

At the end of the day you can ask and the worst they can say is no. 

Jami74

Who would you ask? I'm wondering who in the credit card company would have negotiation rights. 

NoodleDoodleMan

400ixl said:

Simple answer, No.

Indeed - that would be setting a precedent - when word got out the credit card company would be inundated with requests to have the lower rate.

CliveOfIndia

In general the answer is "no".  In extreme cases they will agree to freeze or reduce interest - but that's only when there's a proven case of persistent debt/extreme hardship, and they'd prevent any further spending on the card.  And it would be a massive black mark on your credit history.

BrotherUuurgh said:

Will just asking the question leave a mark on my report?

No.  Your credit file only reports factual events such as missed/late payments and the like, "questions" aren't recorded.

BrotherUuurgh said:

What's the deal? Just trying to learn.

Ideally you want to be repaying your card in full each month, that way the APR is irrelevant as you won't be charged any interest.  If you're unable to do that, the next best option is to see if you can transfer the outstanding balance to a 0% Balance Transfer card.  That way, 100% of your monthly payment goes towards paying down the capital rather than interest - though there is usually a fee for doing the BT, which you need to factor in.

BrotherUuurgh

Thanks for the responses. It makes sense thinking about it - if they did reduce interest rates to the average consumer I'd have probably heard about it by now. Never mind.

Once my debts come down a bit I'm hoping to be elegible for another 0% BT card - I did shift nearly £500 a couple months ago interest free (3% fee) with a PO 3 month 0% BT card. Trouble is, even when they do come up, they only seem to be willing to offer me several hundred and only for a few months. Per my sig, in an ideal world I'd receive a limit of around £3,000 and a 12 month promotional period. 

CliveOfIndia

BrotherUuurgh said:

Trouble is, even when they do come up, they only seem to be willing to offer me several hundred and only for a few months. Per my sig, in an ideal world I'd receive a limit of around £3,000 and a 12 month promotional period. 

If you find you're not being offered any decent BT offers, this may indicate that your credit file is less than ideal.  Not necessarily that there's anything "bad" on there, such as defaults, late payments etc., but simply that you're carrying a lot of debt in relation to your income.

And in any case, whilst 0% BTs can be very handy, it's never a good idea to rely on them.

It may be worth filling out an SOA ( https://www.lemonfool.co.uk/financecalculators/soa.php ) and posting it over on the Debt-Free Wannabe board.  You'll receive plenty of impartial and non-judgemental advice on where potential savings can be made.  And every pound you can save in expenditure is another pound you can throw at the debt, with the aim of nailing the debts sooner rather than later.