Credit Cards for Bad Credit: Getting a Better Interest Rate

If you are saddled with a credit card for bad credit, you are probably paying sky high interest rates. You are probably resigned to those high interest rates, too, because the only way to lower your rates is to wait for your credit card issuer to decide to lower them... or is it? Credit card users across the United States have found that there is a way to get better credit card terms: Just ask.
The method people have found to be most effective is to dial your credit card issuers customer service line and tell the representative that you have a better offer in hand from another company and are considering switching. The customer service representative might send you to someone who specializes in convincing reluctant customers like yourself to stay, or you might stay with them throughout the call. Either way, when you are speaking with someone who can change your interest rate, lay out your case politely and calmly and be prepared to negotiate. If the first representative cannot make you an offer you like during your first call, thank him or her, hang up, and call back later, when you might get a representative who is more willing or more able to help you. (Although customer service representatives are required to follow regulations, they have some leeway in how far they are willing to go for a given customer.)
Credit card customers who used this method found that more than half the time they were able to get a reduction in their credit card interest rates, and the average reduction was 5 to 6 percent. Some customers got their interest rates lowered by half. That is a significant reduction and remarkable savings, especially when you have an interest rate as high as the rates typical for a credit card for bad credit.
Two of the most important determinants of whether a customer got a rate reduction were their credit rating and the length of time they had had their credit card. If you have bad credit, focus on how long you have been a customer, how regularly you have paid your bills on time, and the comparatively small percentage of your credit line you are using, since all of these are also factors in whether your credit card issuer is willing to give you a break in your interest rate.
So call to ask your issuer to lower your interest rate, and be friendly but persistent. You have an excellent chance of convincing them to lower your interest rate significantly. The method is effective even if you have a credit card for bad credit, and the best part is that even if the answer is "No," there will be no repercussions. Whats stopping you from trying today? Your credit card terms can only get better.