How to Write a Letter to Reduce Credit Card Interest Rates
Create a file that includes other offers from credit cards or balance transfer offers with lower interest rates offered., Find out what the current prime rate is., Verify your payment record with your credit card company., Determine where and to...
Step-by-Step Guide
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Step 1: Create a file that includes other offers from credit cards or balance transfer offers with lower interest rates offered.
If you haven't received any in the mail, or if you've thrown them all in the trash, do some research online to find other offers with lower interest rates. -
Step 2: Find out what the current prime rate is.
The Federal Reserve sets this as a standard for lenders and banks.
Credit card companies use this to set their interest rates, usually staying within 9 percent of the prime rate. , If you have not kept your previous bills and statements, contact the credit card company for past copies.
As you review these, keep track of your payment record.
If it is good, your chances of an interest rate review are good.
However, if you have a bad track record with your credit card company, the likelihood of earning a reduction in interest rates may be slim. , Call your credit card company to find out the department, address and reviewer's name to whom you should address your letter. , Important details to include are how long you've been a cardholder with your particular credit card company, your card's current interest rate, other credit card offers with interest rates detailed, the prime rate, and all other arguments you have for why you should receive a lower interest rate on your credit card. , This statement should be near the end of your letter. , Often it takes up to this long for a representative to process your request and a reply to be generated. -
Step 3: Verify your payment record with your credit card company.
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Step 4: Determine where and to whom you should send your letter.
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Step 5: Begin writing your letter.
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Step 6: Tell the credit card company you are prepared to transfer your credit card balance to another company and close your account if they refuse to comply by lowering your interest rate.
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Step 7: Call the credit card company if you receive no response within a six-week time period.
Detailed Guide
If you haven't received any in the mail, or if you've thrown them all in the trash, do some research online to find other offers with lower interest rates.
The Federal Reserve sets this as a standard for lenders and banks.
Credit card companies use this to set their interest rates, usually staying within 9 percent of the prime rate. , If you have not kept your previous bills and statements, contact the credit card company for past copies.
As you review these, keep track of your payment record.
If it is good, your chances of an interest rate review are good.
However, if you have a bad track record with your credit card company, the likelihood of earning a reduction in interest rates may be slim. , Call your credit card company to find out the department, address and reviewer's name to whom you should address your letter. , Important details to include are how long you've been a cardholder with your particular credit card company, your card's current interest rate, other credit card offers with interest rates detailed, the prime rate, and all other arguments you have for why you should receive a lower interest rate on your credit card. , This statement should be near the end of your letter. , Often it takes up to this long for a representative to process your request and a reply to be generated.
About the Author
Katherine Allen
Specializes in breaking down complex crafts topics into simple steps.
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