Ramit Sethi shows how to call your credit card company and negotiate a lower APR. The average U.S. rate is 24%, but you can ask for a cut by mentioning your loyalty and then staying silent. Even a few percentage points off saves thousands over time.
Here's the exact script that I have used to help thousands of people slash their rates. APR is the interest rate your credit card company charges you when you carry a balance on your card at the end of the month. And it's like stepping in financial quicksand. That high interest rate slowly eats away at your money. It is important to lower that APR as much as you can, since that's going to make a big difference in how fast you can pay the debt off. Now, today, the typical APR is about 24% in the United States. but the rates actually vary typically between 20% and 28%, depending on your card and your credit profile. That means that there is some flexibility in how much you're paying, and this means that rate is sometimes negotiable. So how do you play this game? Well, you're going to use your loyalty as leverage. It's not about emotions. You're going to act like you are halfway out the door because indeed you have other options. Here's the exact script that I have used to help thousands of people slash their rates. Pull out your credit card, look at the number on the back, call it up, and ask for the retention department. Then you say this: Hi, I've been a loyal customer for 7 years. I've noticed my APR is pretty high, and I would like a lower rate. What can you do for me today? And then follow my STHU technique. Stands for shut the hell up, quiet down, don't fill the silence, let them come back with an offer. What can you expect? If you have a decent payment history, you you might get a percentage drop or a temporary promo rate. This doesn't happen all the time, but sometimes it works. And when it does, it can be massive.
