Reducing APR

[Anonymous]

FICO score: 670

I have 10 credit cards with APRs of 16.99 - 29.99%.  Every time I try to request a lower interest rate with the credit card companies, they tell me:

"We understand your concern regarding the annual percentage rate on your account.  We received your request for a reduced Annual Percentage Rate; however, a lower rate is currently not available.  You are important to us and we appreciate your business."

How has everyone else accomplished lowering their interest for Purchases and/or Balance Transfers?

[Anonymous]

I had this problem not too long ago with my Wells Fargo Visa. I called every month for several months requesting a lower APR, only to be told the same thing..."A lower APR is not available at this time". The last time I called, the representative advised me to write a letter to the "Executive Office" to request a review to reduce my APR. I did this and less than a week later I received a phone call advising me that my APR had been lowered by 10%. This might generate an inquiry on your credit report, but it made a huge difference in my finance charges each month.

[Anonymous]

The ccc's usually grant cli's once or twice a year. Many ccc's do that based on their internal investigations, plus soft pulls from your cr.

how old are your cc's?

[Anonymous]

Certain companies have "beginner" cards that they really will not reduce the rate on. The answer is: You need a different type of card. If you can afford a little inquiry hit, then I would apply for a card that has a much lower rate to begin with.

If you cannot, then just PIF in your grace period, and don't worry about interest.

[PayYouNever]

yeah, it all depends on your payment history, your balance and your FICO score. I recently requested a CLI from AMEX, was denied due to my EX score. However, I also requested a CLI from First Premier and they bumped me up $125. Not a lot, but considering that First Premier is a "bad credit" CC getting the bump was great as it immediately reduced my UTL from 92% to 74%, and my score will look better from this. So I can probably get CLIs from the other two CCs once I get my balances down a little further -- which is the only thing holding my score in the mid500s that I can do something about without too much effort (i.e. no letter writing).

However, there are those card that aren't designed for lower APRs, unless your write a Reconsideration request to the Executive offices as someone else mentioned above.

[dizzier]

I was just able to get my BofA student card APR reduced from 16.74 to 13.99 which i far below their usual rate of 18.74. previously they had refused to give me a rate reduction, so i opened a card with a lower APR and transferred my BofA balance to it. I let the card sit for a few months then tried again... they approved it.

[SmartCookie]

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dizzier wrote:
I was just able to get my BofA student card APR reduced from 16.74 to 13.99 which i far below their usual rate of 18.74. previously they had refused to give me a rate reduction, so i opened a card with a lower APR and transferred my BofA balance to it. I let the card sit for a few months then tried again... they approved it.

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Very nice!  Nothing gets a CC co's attention faster than a balance transfer to zero out your account. 

[dizzier]

exactly!

[Anonymous]

You are probably right that most of these are beginner cards.  I have CCs between 2 and 7 years old with large revolving balances that kills me in finance charges.  My payment history is excellent, always on-time, and more than the minimum.  You say I need a different type of card; what card would you recommend for me?

[Anonymous]

I have been successful in lowering many of my CC APRs.  I have 11 cards total.  I have just paid off 5 of the highest interest cards. 

HSBC       0/2000 16.4% (was 29.9%)

Chase1    0/1000  26.9% (was 29.9%)

Chase2    0/500    26.9% (was 29.9%)

Chase3    0/700    22.7%

Old Nvy    0/1500  21.0%

Here are the remaining 6:

GM        6500/9000  17.2% (was 29.9%)

Cap1a   1324/2000  16.9%

Cap1b   5404/7500  12.9% (was 19.4%)

AmEx    1280/6500  11.9% (was 18.2%)

Citi          571/1500    6.9%

Disc      3283/5000    0.0% (intro offer then goes to 13%)

Last I checked, my EQ FICO score was 672 before paying off those top 5 cards.  I am able to pay 1100/month towards these CCs.  Any advise on a course of action?  I've owned my starter home for 3 yrs and would like to buy a bigger house around Aug 2009.