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LRC Fundamentals Day 25: Interest Rates

LRC Fundamentals Day 25: Interest Rates

By TheBudgetnista -  Tags: ,


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Day 19: Stop the Calls

Day 20: Your Rights

Day 21:  Review, Reflect, Relax 

Day 22: Credit Report

Day 23: Credit Score

Day 24: Credit Calculation

Day 25: Interest Rates 

Week 4: Credit

Today’s Easy Financial Task: Lower your interest rates

How to rock this task :

  • Choose your oldest credit card that's in good standing
  • Call the customer service number on the back of the card
  • Ask for a lower rate

On Day 17: Debt Repayment, I promised to show you how to negotiate for better interest rates. Don’t be fooled…you can negotiate with your credit card companies for lower interest rates. This works especially if you've had your credit cards for awhile and they’re in good standing.

How to make it do what it do:

  1. Go to and find a credit card with a better interest rate.
  2. Choose the company of the credit card that you've had for the longest, and the one where you have the best payment history.
  3. Call the customer service number on the back of that card.
  4. Negotiate using the competitor you found on Remember to be persistent and polite. No one will help you if you have a bad attitude.

Try saying something like:

“Hi_______. My name is _________. I’m calling because I just received a great offer from a different credit card company. They’re offering me an introductory interest rate of only ___%.

I don’t want to transfer my balance, because I’ve been with your company for _____years, but I really need to lower my costs. I may have to switch cards if you can’t lower the interest rate on my card with you.”

They’ll probably say that you already have the lowest rate they can offer you. Then you should say…

“I could pay a lot less if I transfer my balance though. I was thinking you could give me…__% as a new rate?”


If you’ve been late with payments or have a whole lot of debt, this may not work. But as the saying goes, a closed mouth doesn’t get fed, so I’d ask anyway. Most credit card companies are not willing to lose your business to another company.

If you get your new rate, do a happy dance and make sure to get all the details. For example, is this a short-term promotional offer or your new annual percentage rate (APR)? Will the new rate go into effect immediately? What’s the fine print or additional details you should be aware of, etc.?

What to do if they say no:

Yet another saying goes, if at first you don’t succeed, try, try, try again. Next time ask for a supervisor. You might even have to try back in a few months, especially if your payment record isn’t so clean (if you know what I mean).

Worst case scenario, you can transfer your card balance to the new card you found on Just note that getting a new card will result in an inquiry (see Day 24 for explanation). Also, remember to keep your current card open with a small monthly charge. You’ll need the years you’ve been with them in order to maintain your length of credit history.

Have you checked in with your accountability partners recently? You should. Practice your negotiation skills with each other before reaching out to your credit card company. Don't forget to share what you've learned today. Use the social media tabs to help.

Today I learned how to lower my interest rates. Day 25 #LIVERCHERChallenge Click To Tweet

Do you feel confident about your ability to lower your interest rates? Share your thoughts in the comments below and in our LRC Forum.

Live richer,


You can reach out to me here:

twitter: @thebudgetnista

instagram: @thebudgetnista

Facebook: The Budgetnista

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Tiffany “The Budgetnista” Aliche is quickly becoming America's favorite, personal financial educator. The Budgetnista is also an Amazon #1 bestselling author (The One Week Budget and Live Richer Challenge), sought-after speaker and teacher of financial empowerment.
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