How to Get Lower Interest Rates on Credit Cards | Chase (2024)

FAQs

How to Get Lower Interest Rates on Credit Cards | Chase? ›

If you're not happy with your credit card's interest rate, try to negotiate with your card issuer. Do your research on your account's history and terms, as well as competing card offers, so that you can make an informed argument. Improving your credit score tends to be an effective way to wrangle a lower interest rate.

If you're not happy with your credit card's interest rate, try to negotiate with your card issuer. Do your research on your account's history and terms, as well as competing card offers, so that you can make an informed argument. Improving your credit score tends to be an effective way to wrangle a lower interest rate.

Credit card interest rates aren't etched in stone. In order to retain business, creditors may lower the interest rates of responsible credit card holders who make the effort to ask. A 20-minute phone call could help you drop a few percentage points, but many often wonder: is it worth it?

How do I request a lower APR? To request a lower APR, call us using the number on the back of your card. We often do reviews of credit card accounts to see if we can apply better rates. Please contact us in a few months if you're not approved for a lower rate at this time.

You may be able to secure a 0% APR offer by requesting one from your credit card issuer. Offers are generally for balance transfers, but some issuers also offer pay-over-time plans or credit line loans. Using your card responsibly and negotiating a retention offer can increase your chances of getting a 0% offer.

An APR is considered to be a good rate when it is at or below the national average, which currently sits at 20.40%, according to the Fed. This means that a credit card offering a fixed rate lower than 20.40% or a variable rate with a maximum of 20.40% would be considered a good APR for the average borrower.

You could ask your issuer for a new and improved rate, compare different credit card offers or consider a credit card balance transfer. Just be sure to watch out for interest rate scams. And remember: Paying off your bill in full every month might help you avoid interest charges altogether.

Even people with good credit scores make mistakes, and a bank may charge a penalty APR on your credit card without placing a negative mark on your credit report. Penalty APRs typically increase credit card interest rates significantly due to a late, returned or missed payment.

They claim that the lower interest rates are available for a limited time and that you need to act now. Some even use money-back guarantees as further enticement. The FTC says that the companies behind these robocalls can't do anything for you that you can't do for yourself — for free.

If you tend to carry a balance on your credit card month after month, those high interest rates, also known as APR, can quickly bring you deeper into debt. Fortunately, you may be able to combat this by simply calling your credit card issuer and negotiating a lower rate.

Why is Chase APR so high? ›

Factors that increase your APR may include federal rate increases or a drop in your credit score. By identifying changes to your APR and understanding the actions that led to your increased rate, you can take steps that may help reduce your interest charges in the future.

The secret is to prepare. Compare offers, do some research on going rates, and emphasise your skills to bolster your negotiating position. Pay attention to APR: Request a lower APR, or annual percentage rate, which includes most fees and interest. Government and processing fees are examples of non-negotiable items.

Lenders want to ensure you have a near-perfect history of making payments and handling your debt before offering you no-interest financing. An excellent credit score — 781 or higher — will get you the best deal on financing, but you can still qualify for a competitive interest rate if your score is 670 or higher.

If you're looking to open a 0% APR card, check your credit score first. Introductory no-interest credit cards typically require good credit (scores 670 to 739) or excellent credit (scores 740 and greater).

Card rates are high because they carry more risk to issuers than secured loans. With average credit card interest rates above 20.7 percent, the best thing consumers can do is strategically manage their debt. Do your research to make certain you're receiving a rate that's on the lower end of a card's APR range.

A bigger rate drop may occur late in 2024 and into 2025

Ulzheimer says that an industry-wide meaningful reduction in credit card rates likely won't come until we see "several hundred basis points chopped off the federal funds rate."

You can ask your credit card company to freeze the interest on your credit card, but there is no legal obligation for it to agree. The good news, though, is there are several voluntary codes of conduct most credit card companies have signed up to, which encourage them to help you if you are in financial difficulty.

Negotiate a Lower Interest Rate

Let them know that you want to pay off the debt and ask if there's any way they could lower your interest rate, at least for some period of time. If you've been making on-time payments, you may be able to graduate to a better interest rate simply by renegotiating the terms of your loan.