Writing a Letter to Reduce Credit Card Interest Rates (with Sample)

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There are several reasons a consumer may want to reduce their credit card interest rates. Credit cards are very convenient until payments get behind. 

If that happens, the interest charges usually go up and may be equal to or more than the minimum payment on the amount due.

Credit Card Companies

Credit card companies may also raise rates for large balances, late payments and other reasons. In spite of this, it is possible to get the company to reduce credit card interest rates.

Many credit card companies will lower the interest rate if the customer asks. They may not lower it by much, but any amount will save the customer money. 

The credit card industry is very competitive, and most companies do everything they can to keep the customers they have.

If a credit card company refuses to lower the interest rate, it is in the best interest of the consumer to find a card with a lower rate and transfer the balance of the high-interest card to the new one and cancel the old one.

Learn About The Rates

Before applying for a lower interest rate, the consumer should get a copy of their free credit report and learn a little about the rates different companies offer. 

They may have been targeted by many credit card companies offering lower rates, no annual fees and special introductory offers for the first six months.

The consumer can make a strong case for their interest to be reduced if their credit score is good, and they have made regular payments on their debt.

Customers have experienced a wide variety of responses from credit card companies. They have been told to go ahead and change companies, that they have no facility for lower interest rates or that they will not reduce the rate.

Good Payment History

However, in most cases, they will reduce the rate if they are asked by a customer with a good payment history.

The credit card company may offer other credit card programs that have lower rates and no annual fee, but give only a few miles for air travel and no other bonuses.

The consumer should research the current prime interest rate from the Federal Reserve to know if the rate they get is within nine percent of the prime rate.

This is the usual rate credit card companies give. The consumer should also call the company to ascertain the department and person to whom to address the letter.

Here is a sample of a letter to reduce credit card interest rates. It is important for the consumer to send it by certified mail in order to have a record of the day and time it was received.

It may take three to four weeks for the company to respond, but if a representative doesn’t call the customer by the end of one month, they should follow up with their request.

This can be done by phone. If the credit card company fails to respond, the card should be canceled and a better one gotten.

Sample Letter To Reduce Credit Card Interest Rates

Name of Consumer
Address of Consumer
City, State, Zip Code


Customer Service Department
Name of Credit Card Company
Address of Credit Card Company

RE: Requesting a lower interest rate on card number NUMBER

Dear Sir/Madam:

I have been a card holder with your company for the past 10 years and have always made my payments on time. However, I am formally requesting that you lower the interest amount on my account.

I am currently paying PERCENT OF INTEREST and know that other credit card companies charge a much lower rate.

I would like to stay with your company, but it may not be in my best financial interest. I could transfer my account to a company that has a lower interest rate. Some of the other offers I have received are:

Name of Company at Interest Rate
Name of Company at Interest Rate

I would also like you to consider reducing or removing the fee I pay each year to renew my card. Several of the offers I have received require no annual fee.

As you can see from my record, I have always made payments on time and was never required to pay late fees.

I have also never spent more than my credit limit. These are the reasons I am requesting you to lower my interest rate and remove or reduce my renewal fee.

If my request does not receive a favorable reply, I will need to cancel my credit card with your company and change to a company that gives me better terms.

I would like a representative of your company to call me at 555-123-4567 or contact me by email at Name@email.com to notify me of your decision about lowering my interest rate and eliminating my annual fee.

I would appreciate your prompt attention to my requests. Thank you for attending to this matter.

Signature of Consumer
Printed Name of Consumer

Frequently Asked Questions (FAQs)

1. How can I reduce the interest rate on my credit card?

Answer: There are several ways to reduce the interest rate on your credit card:

  • Contact your credit card issuer and ask if they can lower your interest rate. Explain your current financial situation and ask if they have any promotional interest rates available.
  • Transfer your balance to a card with a lower interest rate. Many credit card issuers offer balance transfer promotions with low or even 0% interest rates.
  • Pay your bills on time. Late payments can lead to higher interest rates.
  • Maintain a good credit score, it can help you to qualify for a lower interest rate.

2. Can I negotiate a lower interest rate with my credit card company?

Answer: Yes, you can negotiate a lower interest rate with your credit card company. Contact them and explain your current financial situation and ask if they have any promotional interest rates available. Be prepared to provide evidence of your ability to pay such as your income and credit score.

3. Will asking for a lower interest rate hurt my credit score?

Answer: Asking for a lower interest rate on your credit card will not hurt your credit score as long as you do it in the right way. It can be a good idea to check your credit score before you make the request, as credit card companies are more likely to approve a lower interest rate for customers with good credit scores.

4. How often can I request a lower interest rate on my credit card?

Answer: There is no set rule on how often you can request a lower interest rate on your credit card. However, it’s best to wait at least six months before making another request, as credit card companies may be less likely to approve a rate decrease if you have recently requested one.

5. Are there any fees associated with requesting a lower interest rate on my credit card?

Answer: Some credit card companies may charge a fee for requesting a lower interest rate, so be sure to ask about any potential fees before making the request. Some card companies may also charge a balance transfer fee for transferring your balance to another card with a lower interest rate.