Inquiring about interest rate reduction on a credit card

[P1x44r]

Just wondering what factors does a bank consider when one inquires about a possibility of interest rate decrease on their credit card?

I got a TD Emerald Visa Card with Prime+4.9% or 7.15% effective interest rate at the moment. I know this card can go as low at Prime+1.9% and I'd like to see if I can get my interest rate to be decreased. When I first got this credit card in 2004 my credit rating was considerably worse than it is right now.

No real reason to do it, as I never carry a balance on this card (not for the last two years anyway), but I do use it all the time (it is my primary card). Has anyone tried something like this and what are the right levers to pull to get it done?

Thanks.

[ray420]

Just wondering what factors does a bank consider when one inquires about a possibility of interest rate decrease on their credit card?

I got a TD Emerald Visa Card with Prime+4.9% or 7.15% effective interest rate at the moment. I know this card can go as low at Prime+1.9% and I'd like to see if I can get my interest rate to be decreased. When I first got this credit card in 2004 my credit rating was considerably worse than it is right now.

No real reason to do it, as I never carry a balance on this card (not for the last two years anyway), but I do use it all the time (it is my primary card). Has anyone tried something like this and what are the right levers to pull to get it done?

Thanks.

Banks base it on your credit worthiness basically your credit report.......they can often reduce the rate if you really go after them, not the first agent on the phone but a supervisor or manager can do it.

If you dont carry a balance and use a CC all the time i'd see switch to a Rewards credit card usually has a higher interest rate but it wnt matter if u dnt carry a balance and you can collect rewards or cashback. Scotia Momentum right now seems to be the best cashback card out there.

[mrbrint]

yeah i tried to get the rate lowered back in 05 no dice, but if u escalated it you may get results

[i6s1]

Back when I was swimming in CC debt, I called each bank several times and asked for lower rates. It never worked. I think most banks have a low interest option, but you have to pay an annual fee for it.

[tophomeloans]

Most banks have set rates for set cards, and they cannot change that. The banks usually offer a low interest rate card that has an annual fee.
If you know someone else who has the same card and is getting a lower rate, then all you need to do is call and ask for it.
If they can, then they will provide it to you; however, the other card might be a promo card.

[hugewallet]

i called cibc to reduce the rate on my classic visa, but no go.

[tkyoshi]

Back when I was swimming in CC debt, I called each bank several times and asked for lower rates. It never worked. I think most banks have a low interest option, but you have to pay an annual fee for it.

Yeah but if you carry a hefty balance you can probably "cover" the annual fee within the first month.

BMO has a low interest rate option of 11.4 for $35/yr. But I've seen people with lower (7-9%) and no annual fee but they generally carried a balance for the whole time they've had the card.

[P1x44r]

BMO has a low interest rate option of 11.4 for $35/yr. But I've seen people with lower (7-9%) and no annual fee but they generally carried a balance for the whole time they've had the card.

TD Emerald card does not go higher than 9.15% if you applied right now. That is if you barely qualified. Otherwise your interest rate can be as low as 4.15%. All this without an annual fee.

[tkyoshi]

TD Emerald card does not go higher than 9.15% if you applied right now. That is if you barely qualified. Otherwise your interest rate can be as low as 4.15%. All this without an annual fee.

You must have an account that waives the fee? Or a special arrangement with them because it does have an annual fee. Also Emerald doesn't have Ext Warranty/Purchase Protection or Rewards (though if you carry balance not that important).


TD Emerald Visa Card

Reduce your interest payments on monthly balances and get convenient access to credit when you need it. Greater flexibility is possible with the low interest rate TD Emerald Visa credit card. Enjoy these and many other great benefits such as access to cash worldwide...FOR LESS!

Annual Fee
$25

Interest Rate
TD Prime + 1.9% up to TD Prime + 6.9%

Current as of APR 22, 2009 . Interest rate, fees and features are subject to change.

[P1x44r]

You must have an account that waives the fee? Or a special arrangement with them because it does have an annual fee. Also Emerald doesn't have Ext Warranty/Purchase Protection or Rewards (though if you carry balance not that important).
No special arrangement that I know of and I'm not sure why they'd waive the fees. I have never been charged the annual fee on my card, not once in five years. :confused:

[tkyoshi]

No special arrangement that I know of and I'm not sure why they'd waive the fees. I have never been charged the annual fee on my card, not once in five years. :confused:

Shhhhh don't tell them :D

Only select service/Plan 60 waives I think. All other accounts it's 1st year free.