Has anyone successfully got their interest rate lowered?

[supern8ural]

Good afternoon everyone

 

Was thinking about this.  I've "successfully" rehabbed my credit mostly by simply waiting for one derog to fall off but also I opened five cards over the last year and a half or so.  I've got CLIs on all of them, and all but two have decent limits.  What I don't like is that four of these cards have interest rates on the higher end of their advertised scales.  Has anyone had any success with calling them up and asking them to reconsider your interest rate?  Specific institutions are Discover and Citi (three cards, two Citi and a Macy's AmEx).

 

I know what you're going to say, I shouldn't be paying any interest anyway and I'm not - the only balance I'm carrying over month to month is a 0% balance transfer that I'm paying off over time, and that's not even one of the cards I'm worried about.  But, as I have been building my credit limits while I don't need them, I figure the right time to lower my interest rates is when it's irrelevant to me, as I would expect if I do need to carry balances that's not a time when I will be able to ask any favors of the institutions.

 

So, can it work?  Or would it just be a waste of time?

[shifter]

5 hours ago, supern8ural said:

a waste of time

Yes. Interest rates don't matter if you are doing it right. There's a lot better ways to prepare for a rainy day then plan to use credit cards.

[hdporter]

ditto:  "waste of time"

 

Because even at the "best" card rates, standard rates still typically run 19.8% and higher.  You don't want to revolve at such rates; instead you should avail yourself of promo rate bt offers as necessary.

 

That said, back around 2000 when my scores pushed past 740, I did successfully solicit rate decreases from a few issuers, to the tune of a couple percent.  (As I suggest, it was a waste of time.)

[supern8ural]

I'm not planning on carrying a balance, but my "bad" cards are close to 30%, I just don't like that.

 

My scores are way higher now than when I opened these cards so I was thinking they might reconsider.  I guess I'll wait for the monthly AR pulls and call them, doesn't cost me anything.

Edited February 1, 2025 by supern8ural

[shifter]

9 hours ago, supern8ural said:

close to 30%, I just don't like that

20% will still make you broke almost as fast. If you want to spend time somewhere, there are CUs that offer cards with rates closer to 10% that are better options. Or a LOC probably also with a CU, that could have an even lower rate. 

[supern8ural]

5 hours ago, shifter said:

20% will still make you broke almost as fast. If you want to spend time somewhere, there are CUs that offer cards with rates closer to 10% that are better options. Or a LOC probably also with a CU, that could have an even lower rate. 

 

Oh I get it.  And the only debt I have older than a month is at 0%, and I have several 0% offers right now.  I just feel like this is something that I need to do.  I am waiting until after tomorrow when my last zero balance posts and then I'll wait for each bad card's AR soft pull and after that call them and ask for a lower interest rate.

 

I posted a while back about CBIS as well but never got any responses.  I guess this month I should call State Farm and ask them to rescore me if they can because I'm paying over $500 a month and that just seems insane.

[hdporter]

Definitely have your insurer reprise, at least annually.

 

And also put in a call to a strong local broker and have them shop you around.  In my experience, ins cos don't reward loyalty (especially if you've had a claim in the past 5 years, accident forgiveness notwithstanding).

[supern8ural]

So I'm following up on this...  I've optimized my scores as much as I can at the current time and found myself sitting on the couch waiting for laundry and the dishwasher to finish, so I figured I might as well suck it up and do the one thing that I really hate doing, which is picking up the phone and talking to people.  Results:

 

Discover It: 25.24% to 20.something % (I neglected to write it down) this is not the lowest advertised APR for this card (which is 18.24%), but I'll take it.  Representative basically said to wait 6 months and call back and request again, so I shall!

 

Costco Anywhere Visa by Citi: they're "not doing interest rate adjustments at this time".  I'm currently at 25.99% and the lowest advertised is 19.49% so I do want to lower this though.

 

Citi Double Cash: 26.24% to 18.24% which *is* the lowest advertised interest rate for that card.  So that's awesome.  This is odd as this card is much newer than the Costco one.

 

So now all my cards are at or below the lowest advertised APR except for aforementioned Discover It and Costco Anywhere Visa.  Macy's AmEx was at 30.99% in January (last time I used it, so that's the last statement I have) current advertised rate is 34.99% but hey, if carrying a balance on a credit card is dumb, carrying a balance on a store branded card is double dumb.  Not much I can do about that except just let it age and contribute positively to my credit score.  The rest (BoA Customized Cash Rewards, 17.24%/18.24% advertised,  Chase Freedom Unlimited, 19.24%/19.49% advertised, and Capital One Savor, 19.24%/19.24% advertised) are under 20% and at or under advertised which I guess is about as good as you're going to get these days.

 

Yes, I know, never carry a balance - and I'm not, except for a 0%BT on my Chase card which will drop under 10% util next month - I just figure that this is good to do now while my scores are awesome, God forbid things change in the future, I may need this stuff.

 

As of right now my whole "rebuild" process is going well.  I'm pretty much good, except things I want to work on:

 

Discover is only $10k CL and I'm not at the lowest advertised APR

Costco Anywhere Visa is only $1K CL but not eligible for CLI for another 3 months, also not at the lowest APR

Citi Double Cash is only $1K CL also not eligible for 3 months but *is* at lowest APR

 

onward and upward!

 

 

 

 

Edited March 8, 2025 by supern8ural

[FoxSamual]

On 2/1/2025 at 6:27 PM, hdporter said:

In my experience, ins cos don't reward loyalty

Progressive's loyalty program made their rate untouchable for me no matter how aggressively I shopped it around, in three of the five States I've called home.  When I moved to State #4 I rudely learned they're not competitive there regardless of how good your claim history/credit/loyalty status is.  It was a fun ride while it lasted though.

 

On 2/1/2025 at 9:40 AM, shifter said:

there are CUs that offer cards with rates closer to 10% that are better options

 

I have a local FCU card at 11.99% and NFCU Platinum at 10.99%.  Neither has fees for cash advance (just interest) so those are my "back up against the wall" cards if the worst happens and savings is totally exhausted.  Neither FCU has a rewards program worth caring about, so they exist for the emergency scenario, and utilization padding.

 

I still did what OP did and made efforts to get APR reduced on PIF cards.  It's just a phone call.  Doesn't hurt to get the account into a better bucket. 🤷🏻‍♂️

[hdporter]

Something like 15 years ago Progressive quoted a rate which we found extremely attractive.  We jumped.  And then, at each 6-mo renewal they would hike us 10%-15%.  Within 2 years, our premiums had risen 60%+, without a claim or dent in our credit.

 

I switched to Geico and haven't quoted Progressive since.  I'm sure they're offering us an attractive rate quote ...

[ShawnPY1972]

On 1/31/2025 at 10:06 AM, supern8ural said:

Good afternoon everyone

 

Was thinking about this.  I've "successfully" rehabbed my credit mostly by simply waiting for one derog to fall off but also I opened five cards over the last year and a half or so.  I've got CLIs on all of them, and all but two have decent limits.  What I don't like is that four of these cards have interest rates on the higher end of their advertised scales.  Has anyone had any success with calling them up and asking them to reconsider your interest rate?  Specific institutions are Discover and Citi (three cards, two Citi and a Macy's AmEx).

 

I know what you're going to say, I shouldn't be paying any interest anyway and I'm not - the only balance I'm carrying over month to month is a 0% balance transfer that I'm paying off over time, and that's not even one of the cards I'm worried about.  But, as I have been building my credit limits while I don't need them, I figure the right time to lower my interest rates is when it's irrelevant to me, as I would expect if I do need to carry balances that's not a time when I will be able to ask any favors of the institutions.

 

So, can it work?  Or would it just be a waste of time?

 

I have a visa card with BECU and they lowered my interest rate by one lousy percent.  Fortunately, I pay off my account every month so I don't pay interest on that account.

[FoxSamual]

On 3/8/2025 at 5:11 PM, hdporter said:

And then, at each 6-mo renewal they would hike us 10%-15%

 

Yeah, that seems to be their new MO.  The initial quote/policy, if you read the fine print, there's a "New Policy Discount."  First renewal, it drops off, immediate rate hike.  It wasn't like that yesteryear, I had the same policy for 10+ years with literally no increase, not even inflation.  When I moved to a different State, one of the most expensive for auto insurance in the union, same deal.  Rate was astronomical but it never went up at renewal.

 

In State #4, I hit the behavior you're describing, and the worst part is even the initial quote wasn't competitive.  The carrier that beat them, State Farm, was never competitive for me in any other State, but in #4, they trounced 'em.

 

What I really hate is how they all want you to do their Big Brother spy devices.  The original incarnation of those devices were reasonable, they monitored time of day, miles driven, and "hard brakes."  Progressive only did it once, for six months, and then you were good for the life of the policy.  I could do their program and easily get an almost perfect score + max discount with simple defensive driving.

 

Today they count a zillion other factors and want you to do it indefinitely.  I got dinged for "inconsistent scheduling" by both Progressive and State Farm, i.e., I don't always drive to work at the same time. 🥴

 

We refuse to play that game now and eat the higher upfront rate.  It really confuses them when you quote a new policy and refuse to play that Big Data Big Brother game.  "But, it might save you money!"  Pass.

 

[hdporter]

For S&G's I loaded the CreditKarma Drove Score app on my phone.

 

I forget to turn it off when I Lyft to the airport.  I have to remove the ride from my history, always dinged multiple times for sudden acceleration/stops and sometimes speeding.

 

I also have to remove plane runway activity ... those speeds are impressive

[swingline]

It used to be you could get long term reductions in rates. What I've noticed over the past few years is usually they offer short term promotions now. And if you're not actually going to use it right now anyway, it'll probably expire before you do. 

 

In the current climate, best bet if you ever think you will need to use credit (and not using it now) is to get a new card at that time with 12-18 months 0% and a cash bonus.  

 

And while you don't want to churn too much, if you have a card from one of the banks that gives good sign-up bonuses, and it's only a couple of years old, you should cancel it and be eligible to get another offer from them in a year or two. Don't cancel a card that's less than a year old or one you've had awhile that is helping with your average age of open credit. 

 

[supern8ural]

Well, It's been three months since I tried before, called Citi back and the nice lady got me down to 19.49% on my Costco Visa which is the advertised minimum for that card.  Things are all right!  So as of right now my action items are:

 

Discover is only $10k CL and I'm not at the lowest advertised APR - was told to call back in 6 months which is 3 months from now

Costco Anywhere Visa is now $2k CL (still want more) due to recent CLI and is now at the lowest APR

Citi Double Cash is also now $2k CL also due to recent CLI but *is* at lowest APR as of three months ago.

AmEx BCE is a new card at $10k CL and I can't currently see it but I know the APR is not the lowest advertised, I think it's about 25% whereas they go as low as 20ish I think?  I don't even have the card yet so this is new and shiny.  Will work on that one.

 

So basically just my making a few phone calls now all but two of my cards are at or below the lowest advertised APR...  yeah I know it should never matter, but it cost me nothing but a little time.

Edited June 9, 2025 by supern8ural

[shifter]

As we used to say...

 

If you're using the APR, you're doing it wrong. 

[ShawnPY1972]

4 hours ago, supern8ural said:

Well, It's been three months since I tried before, called Citi back and the nice lady got me down to 19.49% on my Costco Visa which is the advertised minimum for that card.  Things are all right!  So as of right now my action items are:

 

Discover is only $10k CL and I'm not at the lowest advertised APR - was told to call back in 6 months which is 3 months from now

Costco Anywhere Visa is now $2k CL (still want more) due to recent CLI and is now at the lowest APR

Citi Double Cash is also now $2k CL also due to recent CLI but *is* at lowest APR as of three months ago.

AmEx BCE is a new card at $10k CL and I can't currently see it but I know the APR is not the lowest advertised, I think it's about 25% whereas they go as low as 20ish I think?  I don't even have the card yet so this is new and shiny.  Will work on that one.

 

So basically just my making a few phone calls now all but two of my cards are at or below the lowest advertised APR...  yeah I know it should never matter, but it cost me nothing but a little time.

 

Do creditors do soft or hard inquiries when considering the APR reduction?

Edited June 10, 2025 by ShawnPY1972

[supern8ural]

I can't speak to everyone but I've never had a hard pull for either CLI or rate reduction.

[Flyingifr]

I have to disagree with those who said it was a waste of time. It very well may be a waste of your time, but if you don't ask at all you have no possible chance of getting what you want.  In today's credit market I doubt you will get anything, but as I said, if you don't ask, you have no chance at all.

[hdporter]

14 hours ago, supern8ural said:

Well, It's been three months since I tried before, called Citi back and the nice lady got me down to 19.49% on my Costco Visa which is the advertised minimum for that card.  Things are all right!  

 

Reducing a credit card APR to 19.49% constitutes a "win" only if you intend to revolve a balance at that rate.  (Otherwise, it takes on the guise of "self-gratification".)

 

Such a win truly represents a Pyhrric victory.

[supern8ural]

6 hours ago, hdporter said:

 

Reducing a credit card APR to 19.49% constitutes a "win" only if you intend to revolve a balance at that rate.  (Otherwise, it takes on the guise of "self-gratification".)

 

Such a win truly represents a Pyhrric victory.

 

I agree with your point, but I'm just trying to get my entire credit profile as buffed as possible.  In the unlikely event that I'd have to carry a balance not on a 0% offer, I'm trying to get every card at least at the advertised minimum APR.

[shifter]

13 minutes ago, supern8ural said:

In the unlikely event that I'd have to carry a balance not on a 0% offer

There's a dozen better cards for that then anything from Citi or any of the major banks. If you want to prepare for needing cash, spend your time on getting a LOC or at least a couple of CU cards with no cash advance fee and single digit interest rate. 

[supern8ural]

The only CU with which I have a relationship offers a card with a 14% APR and no real benefits... but maybe I should pick it up anyway.  Gotta decide if I want to do it now or wait though because my soonest goal is I want to buy a house and I already have tons of new-ish cards although most of them will start hitting the 2 year mark pretty soon.

[hdporter]

5 hours ago, supern8ural said:

The only CU with which I have a relationship offers a card with a 14% APR and no real benefits... but maybe I should pick it up anyway.  Gotta decide if I want to do it now or wait though because my soonest goal is I want to buy a house and I already have tons of new-ish cards although most of

them will start hitting the 2 year mark pretty soon.

 

If your CU doesn't charge a cash advance fee, then that 14% credit card presents desirable liquidity flexibility.

 

For example, in a pinch you can draw funds for a couple of weeks at a cost of about 0.6%.

 

And certainly it's a lower cost and more flexible option when it comes to the contingency that you're attempting to cushion by lowering your other card standard rates.

[shifter]

On 6/10/2025 at 3:41 PM, supern8ural said:

The only CU with which I have a relationship offers a card with a 14% APR and no real benefits

I suppose that's why I didn't say a good plan was to get a poor CU card because it's the only one you're a member of. I said if you want to work on a contingency cash plan because you are bored, working on getting a good CU card is a worthy endeavor. There's plenty of CU options that are open to anyone.