If you think that the interest rate of your credit card must be reduced, don’t just sit there and wait. Credit card companies won’t volunteer to lower your rate if you won’t ask them to. Surprisingly, a recent study reveals that 57% of credit card holders simply phoned in their requests and were granted a lower rate without any difficulty. So if you think you’re a good candidate, pick up your phone and speak out.

Why Ask for a Lower Rate Lowering your interest by even just 10 points or less can bring huge savings to your budget. Just imagine bringing down your 19% interest to just 10%. Now certainly, that makes a big difference. Although it should be your goal to pay off your balances in full each month and avoid the interest altogether, there may be instances when you have to carry over your balance. Reducing your interest rate protects you from the risk of bad credit.

Are You a Good Candidate? Nevertheless, credit card companies won’t just lower their rates for anyone. Are you a good candidate? First, check your credit report and gauge your credit rating. If you’ve been consistent in submitting your payments on time to all your creditors, you should have problem maintaining a high credit score. Paying off your monthly charges in full also makes you an ideal customer for creditors.

Your debt to income ratio may also be considered. How much do you spend each month and how does this compare to your earnings? Do you frequently carry a large amount of charges on your card? Do you often maximize your card’s credit limit? Financial experts recommend not using more than 40% of your given credit. Using more than 505 or worse, exceeding your credit line would make you a high-risk borrower in the eyes of creditors.

Also, you need to consider the type of credit card you have. If you’re using a secured credit card or a bad credit credit card, you may not be in the position to demand for reduced rates. Since you’re regarded as a high-risk borrower, you can’t expect your credit card company to reduce your rates just because you asked them to.

What to Say If you enjoy an excellent credit history, there’s no reason why you shouldn’t deserve a lower rate. The question is, what should you say to your credit card issuer? What points can you use to convince your credit card to reduce your costs?

One strategy is to research about the interest rates that other credit card companies offer. Based on your research, compare them with your credit card’s rate and use this argument to request for a lower rate. You can also point out that you’ve been a long time customer (and a good payer at that!) and that you’ll like to stay within their company but that other credit cards seem to offer a better deal. Ask them if they could match that offer.

If the person you talked to insists that it is not in their power to make adjustments on fees, ask to speak with the supervisor. If your request is initially rejected, don’t lose hope. Call again after a month or two and see if they’ll be more agreeable to your request. While waiting, continue to improve your credit score and you’ll have better chances of getting a positive answer.