How to Negotiate a Lower Interest Rate on Your Credit Card

Will Credit Card Companies Lower Your Interest Rate?

Each credit card company will make its own determination for whether to lower your annual percentage rate (APR) when you initiate a negotiation. But you'll increase your chances of success if you focus on issuers with whom you've had a long relationship as a customer, and if you've historically paid your bills on time.

It's worth it to ask for a lower interest rate. When you make payments on a high-APR card, more of your money goes toward interest, which means it takes longer to chip away at the principal balance. Negotiating a lower credit card interest rate is one strategy to help get out of debt. It can also offer breathing room if you're dealing with a financial emergency that affects your ability to cover all your bills.

How to Lower Your Credit Card Interest Rate

Here's a step-by-step guide for how to negotiate a lower interest rate on a credit card.

1. Start With the Card You've Had the Longest

It's smart to ask for lower rates on all your credit cards if you have more than one. But prioritize calling the issuer for the card you've had the longest—particularly if you consistently pay your credit card bill by the due date. That track record should give you some leverage.

Let the issuer know why you're seeking a rate reduction. Perhaps you're facing a new financial burden such as job loss, a salary cut or unexpected medical bills. Maybe you've recently worked on building your credit, and you'd like to focus now on paying off debt. Or you might have received offers in the mail or online for cards with lower rates than you currently have.

Mention that you've made on-time payments for several years and ask whether the issuer would consider reducing your interest rate as a way to reward your loyalty and reliability.

You could also start by calling the issuer of the card that carries the highest interest rate. A drop in that card's rate will reduce the amount of interest you pay by the biggest margin. But if you haven't had the card for too long, you won't be able to use your customer loyalty to your advantage.

2. Ask for a Temporary Break if Necessary

If your issuer isn't willing to offer a lower rate indefinitely, ask for a temporary reprieve: for instance, a one-year rate reduction of 1 to 3 percentage points off your current rate. Be sure to mention it if your credit score has recently gone up, which can show that you'll make payments on time in return. Or you can ask for a temporary break for as long as you'll need to bounce back from financial trouble.

3. Try Again

Keep detailed notes of all your calls. If a credit card issuer won't lower your current interest rate, even for a short time, call again in three to six months. Asking again won't hurt, especially if you continue to make your payments on time. And be sure to mention any new, lower-rate card offers you've gotten from competing issuers in the meantime.

While you can threaten to cancel your credit card if the issuer doesn't agree to your request, actually doing so could negatively impact your credit scores. Canceling a credit card reduces your overall available credit, which means you'll be using a higher proportion of it if you have debt on other cards. This higher credit utilization rate can hurt your credit scores.

Canceling a card may also affect your credit mix and lower the average length of your credit history, which could have an additional negative effect on your credit.

4. Call the Rest of Your Issuers—and Use Your Interest Savings Strategically

Repeat this process with the rest of your issuers. Even if you have a card with a much lower balance than the others, call the credit card company and try to negotiate a lower rate anyway. Any money you save on interest helps. Try to use your interest savings to make extra or larger payments toward your other credit cards.

As you pay down debt, consider using the debt avalanche method to pay off your cards with the highest interest rates first. That means making minimum payments on the rest of your cards, and putting as much as possible toward the one with the highest rate. Once the first balance you've targeted is gone, focus on the next highest-rate card and repeat the cycle. You can save the most money in interest over time this way, especially coupled with lower rates from your successful negotiations.

Learn more: Reasons to Pay More Than the Minimum on Your Credit Card

What Is a Good Interest Rate on a Credit Card?

The credit card interest rate you'll qualify for depends on your credit score, the type of card you're interested in and overall market conditions.

One way to gauge whether a card's interest rate is "good" is to compare it to the average. As of May 2025, the average interest rate on credit card accounts that charge cardholders interest was 22.25%, according to the Federal Reserve Bank of St. Louis. When negotiating a lower rate on your current cards, aim for a rate that's lower than the average.

Keep in mind, too, that rewards credit cards may charge higher rates than cards that don't offer airline miles or cash back. Similarly, credit cards aimed at those with fair or poor credit and retail credit cards often have higher rates.

How to Avoid Paying Interest on a Credit Card

Your cards' interest rates won't affect you if you pay off each card's balance in full every single month. You can do this by making use of your card's grace period, which most issuers offer. The grace period is the time between the end of your billing cycle and your payment due date, and it's typically about 30 days.

Paying off your total balance before the grace period ends means paying no interest on your charges. But if you carry a balance for even one month, your issuer may suspend or eliminate your grace period—meaning you'll pay interest on the outstanding balance and on any new purchases starting from the day you make them.

Check your credit card's terms and conditions to understand how your issuer treats the grace period. You may regain grace period privileges if you pay off your total balance for a few months in a row. As a general rule, though, always bring your balance to zero by the due date, and you won't have to worry about access to the grace period or fast-rising interest charges.

How a Lower Interest Rate Can Help You

Lowering the interest rate on even one credit card can help you pay off debt sooner, which may also improve your credit scores. Amounts owed is one of the top contributing factors to your credit scores—both the percentage of available credit you're using and the total amount you've borrowed. Cutting down your credit card balances is one of the best ways to strengthen your credit, along with making all payments on time.

Frequently Asked Questions

The Bottom Line

It's possible to negotiate a lower interest rate on your credit cards. If your card issuers say they won't lower your rates, be patient and call again periodically to negotiate. Changes in circumstances, available card offers and even different customer service representatives may get you the response you want.

After you've cut your interest rates and paid off debt, maintain good credit habits. Avoid charging more purchases unless there's an emergency—and even then, aim to maintain an emergency fund so you can avoid having to use credit cards in the first place.