I was paying 24.99% APR on my credit card. That’s insane. But I just… accepted it?
Then someone told me, “you can call and negotiate with credit card companies to lower your rate.”
I was sceptical. Why would they just lower my interest rate because I asked nicely?
But I tried it anyway. One phone call, 12 minutes, and my APR dropped from 24.99% to 19.99%.
Here’s exactly what I said, what worked, and what didn’t.
Why Credit Card Companies Sometimes Negotiate.
They make money with the interest and fees that you pay, as well as when you swipe your card.
If you say you’ll stop using the card and will pay your balance, they lose all that money.
So it’s better that you keep using the card and pay less interest.
That’s why they negotiate.
My First Attempt (That Failed)
August 2023 was when I first called Chase to ask about my 24.99% interest.
What I said (wrong approach):
“Hi, um, i was wondering if maybe you could lower my interest rate? It’s high and I’m trying to pay it off”.
Their response: “I’m sorry but your rate is based on your credit and we can’t change it at this time.”
Call ended. 3 minutes. Nothing changed.
Why it failed:
- I sounded unsure (‘um’, maybe, wondering)
- I didn’t give them a reason to help me.
- I accepted the first ‘no.’
My Second Attempt (That Worked)
November 2023. I attempted another one using a different approach. What I said (better script):
What I said (better script):
Me: “Hello, I am enquiring about my APR. I have been with you guys for 3 years, I have no delinquencies, and I go beyond the minimum payment. I currently pay 24.99% and I have 0% balance transfer offers from other cards for 18 months. Before I do a balance transfer, can you do something about my rate?”
Rep: “Let me pull up your info… I see you have been a good customer, please hold.”
[2 minute hold]
Rep: “I can reduce your APR from 24.99% to 19.99% Would that work?”
Me: “That’s an improvement, thank you. Is this a permanent change or will it go back up?”
Rep: “Permanently like that unless you have delinquencies.”
Me: “I can do that, thank you.”
Total time for the call: 12 minutes
Why this worked:
- I was confident in my statements
- I highlighted my good customer standing (3 years with no delinquencies)
- I provided a competing rate ( 0% balance transfer)
- I was willing to walk away if it was a no.
Exact Script You Can Copy
Here’s what to say when you call:
“Hi, I’m calling to discuss my APR. I’ve been a customer for [X years/months], I’ve never missed a payment, and my credit score has improved to [your score]. My current rate is [your APR]%, and I’ve received offers from other cards at much lower rates. Can you lower my APR to match competitive offers?”
Key phrases to include:
- “I’ve been a loyal customer for (timeframe).”
- “I always pay on time.”
- “My credit score has improved to (number).”
- “I’ve received offers from competitors”
- “Before I transfer my balance…”
What NOT to say:
- “I’m struggling to make payments” (they’ll see you as risky)
- “Can you maybe possibly…” (sounds weak)
- “I might look into other cards” (too vague)
What to say if they say no:
“I understand. Can you transfer me to your retention department”
My third call (to test this):
I called about my Discover card in January 2024.
First rep: “Sorry, I can’t change your rate.”
Me: “Can I talk to retention?”
[Transferred]
Retention rep: “I can drop your interest rate from 21.99% to 18.99% and I will waive your annual fee for 12 months.”
Boom, not bad just for asking to be transferred.
Other Negotiation Opportunities
The APR isn’t the one thing that is negotiable. You can also negotiate:
1. Late fees
If you missed just 1 payment in the past and got your account slapped with a $40 late fee, you can call and ask for the fee to be removed.
Script: “I’ve been a customer for [X years] and this is my first late payment. Can you waive the fee as a courtesy?”
If this is your first time having a late fee, this works 70% of the time.
2. Annual fees
Annual fees can be more than $100, and sometimes that fee gets waived for cardholders who are thinking of cancelling.
Script: “I’m thinking of canceling my card because the annual fee is too high. Can you waive it or give me some points/statement credit?”
3. Credit limit increases
Higher credit limit = better credit utilisation = higher credit score.
Script: “I’d like to request a credit limit increase. My income has increased and I’ve been a customer in good standing.”
When Negotiation Won’t Work
They probably won’t help if:
- You’ve missed multiple payments in the last 12 months
- You’re currently late on payments
- You’ve only had the card for 3-6 months (not enough history)
- Your credit score has dropped significantly
- You’re already at the lowest rate they offer
In those cases:
Focus on improving your payment history for 6-12 months, THEN call to negotiate.
How I have saved money.
Chase card: 24.99%- 19.99% is a 5% difference.
5% annually is $100 on a 2,000 card.
Discover card: 21.99%- 18.99% is a 3% difference.
4 + 12-month fee of $95 waived.
Overall, I have saved $195 for the 25 minutes of calls.
If you have any other cards you would like me to alter, let me know!
Tips for a Successful Call
Before you call:
- Know your credit score.
- Check your payment history.
- Have your account number ready.
- Know what you want to say (have a script ready)
During the call:
- Be polite but direct.
- Keep your cool
- If they say no, ask for the retention department
- Take notes (rep name, date, what they said)
After the call:
- Confirm the change in writing (check your next statement)
- Set a reminder to call again in a year.
The Worst Case Scenario
What if they say no and refuse to budge?
You can:
- Try again in a few months.
- Transfer to a 0% interest card.
- Work on your debt to lessen the interest.
Honestly, though. Most people don’t even TRY to negotiate. Just asking puts you ahead.
Negotiating with your credit card issuer can sometimes reduce costs before considering a balance transfer.
The Bottom Line
I spent 25 minutes on the phone and saved $195 in year one. That’s $468/hour.
Credit card companies expect you to just accept the rates they give you. Most people do.
Just make sure you ask competitively and mention other rates you’re willing to pay, and then push that you’re a loyal customer; they tend to do a bit of price matching to keep folks around.
You’ll probably save hundreds. Just one phone call that involves 10 to 15 minutes of your time.
It’s worth a shot.
Feni. Personal Finance Writer & Budgeting Researcher
Feni focuses on practical budgeting systems, debt reduction strategies, and long-term financial stability. Her work combines real-life experience with research-based financial principles to create sustainable money habits rather than quick-fix solutions.
At ThriftVine, she shares structured, accessible guidance to help individuals build stronger financial foundations and make informed financial decisions.
The information shared on this website is for educational purposes only and should not be considered financial advice. Visit the About the Author page for more information.