Are you wondering how you can get an interest rate reduction on some of your credit products? An interest rate reduction can save you hundreds of dollars every year in interest payments, depending on the amount of debt that is serviced under the interest rate reduction. Some people have found that negotiating with the lender directly is the best way to get an interest rate reduction, regardless of whether you have past blemishes on your credit accounts.
Why Should I Talk To The Lender?
Lenders have the ability to choose which debtors to give an interest rate reduction and typically base their decision on your credit score and existing industry standards that can vary for different types of credit products. These standards do not establish standards that the lender must use for interest rate reduction requests, only suggest the best methods for different circumstances. This is why you can receive interest rate reduction offers of differing amounts from different lenders even though they all have looked at the same information.
In many cases, the lender will grant interest rate reductions to people that have an existing relationship with the lender and reserve the lowest interest rates for the people that have used their services for a long period of time. People that raised their credit score by a significant amount during the time that the account was open may be able to obtain better results by calling the lender and asking for the account to be reviewed. The lender will review the account and make the determination of whether an interest rate reduction is warranted.
This method works best if you have a prior business relationship with the lender and have not defaulted on any credit agreements in the past year. The lender will review your account history before deciding whether you deserve an interest rate reduction. If the recent account history looks good, it is easier for the lender to decide in your favor and reduce your interest rate to a more acceptable level. If you have a history of payment problems and financial issues, the lender will be much less willing to reward you with a lower interest rate.