Most cardholders who asked for lower interest rates got them, survey finds
Photographer: David Paul Morris/Bloomberg via Getty Images
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Fewer credit cardholders asked their companies for lower interest rates or waived fees over the past year.
However, most people who did ask were successful, according to a LendingTree survey.
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This was the sixth year LendingTree asked cardholders about requests for lower annual percentage rates, waived late fees and reduced annual fees.
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By the numbers:
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According to the survey:
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- Eighty-four percent of people who asked for a lower interest rate received one. The average rate reduction was 6.3 percentage points.
- Ninety-two percent of people who asked to have a late fee waived were successful.
- Sixty-four percent of people who asked to have a foreign transaction fee waived or reduced succeeded.
- Sixty-one percent of people who asked to have a balance-transfer fee waived or reduced were successful.
- Ninety-four percent of people who asked to have an annual fee waived or reduced got their request approved.
- Nearly 4 in 10 cardholders said they had a fee waived or interest rate lowered without speaking to a customer-service representative.
- More than half of cardholders said inflation has made them more likely to ask for a break.
Why you should care:
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Requests for lower interest rates were successful more often this year than in any previous year of LendingTree’s survey.
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The average reduction was 6.3 percentage points. For example, a borrower with $7,000 in credit card debt could save about $1,346 in interest by lowering the rate from 25% to 18.7%, while continuing to pay $250 each month.
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LendingTree said cardholders do not need perfect credit or a high income to make a request.
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RELATED: US credit card debt hits $1.26 trillion as delinquencies rise: What you can do
Tips for asking your credit card company
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What you can do:
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Cardholders can improve their chances by:
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- Asking after making on-time payments or improving their credit score.
- Politely explaining why they want a lower rate or waived fee.
- Mentioning competing offers from other credit card companies.
- Using the issuer’s online chat tool or automated phone system.
- Trying again later or speaking with another representative if the request is denied.
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Cardholders should be specific about what they want, whether it is a lower interest rate, a waived late fee or a reduced annual fee. A short request could potentially save them hundreds or thousands of dollars.
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The Source: The information came from a LendingTree survey of credit cardholders, which asked whether they had requested lower interest rates or waived and reduced fees during the past year. This story was reported from Los Angeles.