Can one phone call lower your credit card rate?

(11/21/06 - KTRK/HOUSTON) (KTRK) -- Before the cash registers ring, you should give your credit card company a ring for a lower rate.

"You can lower your credit card interest rate by just picking up the phone," said Curtis Arnold of Cardratings.com.

Curtis Arnold runs cardratings.com, a web site that lists the best credit card offers currently available and says there are three keys to getting a lower rate.

First, know your account history, if you don't pay late, tell that to the credit card's customer service representative.

Next, you should know the average credit card rate is 15%. If you are paying more than that, tell the representative, you know you can get a better rate somewhere else.

Finally, know your credit score. Most consumers have a credit score in the 700 range, which is considered good. If you have a score around 700, tell the card representative.

"Ask them point blank, why am I paying such a high rate," asked Arnold.

If the card rep says, "no", tell them you want to close the account. You don't actually have to follow through, but by saying it, you will be transferred to an account retention department. That department is designed to keep you as a customer.

"They are the ones that can make the big concessions to you, they are the ones that can get the results accomplished," said Arnold.

If the answer is still no, Arnold says find a credit card with a low rate on balance transfers and move the balance to that new card.

So we asked to Houstonians to help put this theory to the test.

Our credit card testers were not armed with any of that information, they simply called the credit card company. So how did they do?

Joelle Miller of Houston lowered her rate by almost seven percent.

However, Marie Washington of Missouri City found out her company could not offer any rate decrease.

It turns out about half those who make that simple phone call succeed in getting a lower rate.

Keep in mind our testers were just told to make a phone call and nothing else.

Another tip, if your credit card rep says no, call back in 15 minutes. You'll be speaking to a different person and that may be all it takes to get that lower rate.

Want more? Click here to link to the KTRK Consumer Blog.
<span class=xsmall> (Copyright © 2006, KTRK-TV)</span>

>>Click here to send Jeff a consumer news tip
>>Read Jeff's Consumer Blog
>>Talk on the Consumer Message Board
<span class=xsmall> (Copyright © 2006, KTRK-TV)</span>

Get more News »

• Email
• Print
• Report a typo
•