Cut Your APRs and Increase Your Limits _all in one phone call_

I’m amazed that more customers aren’t proactive with their credit card companies. About every four to six months, I contact all of my credit card companies to see about cutting my APRs and upping my credit limits. I have rewritten this story. In light of the changing credit environment, you should read the new story (link here). It’s really quite simple. Call the 1-800 number on the back of your credit card. When you get a customer service representative on the phone, simply ask if your account is eligible for an interest-rate reduction. Here’s what you say: I’m a good customer; I have a great payment history; I’d like to have the APR reduced on my credit card. The service rep will be able to adjust your rate right on the spot if your account is eligible. The worst thing that can happen is the rep will say no. You have nothing to lose. The companies that I have found most receptive to APR changes are Citibank and Bank of America. Chase is the most stingy. You don’t carry a balance, you say? Doesn’t matter. It’s the principle of the thing. You’re a great customer who should be getting the best rate. Low APRs demonstrate your creditworthiness. What’s more, if the credit card company is unwilling to lower your APR to a reasonable level, then they might be telling you something. You may want to take a look at your habits to see if there is anything that needs changing.(By the way, you shouldn’t expect low APRs on some of your rewards cards. Those cards often charge higher interest rates. You may already be at the lowest rate for that card, even though it’s relatively high.)While you have the operator on the phone regarding your APR, you may as well ask about credit line increases as well. But take heed: some card companies are unable to give you a limit increase without pulling a new credit report (Chase is notorious for pulling a credit report that results in a hard inquiry). I avoid those. Instead, I am looking for guideline increases that are already built into the system. Bank of America, meanwhile, allows you to request a credit-line increase online. It will be a soft inquiry unless Bank of America tells you otherwise (its disclosure says that it will not do a hard pull without first notifying you). I’m talking about getting limit increases without it resulting in a hard inquiry (which stays on your credit report for two years). When you get on the phone, simply ask for a guideline increase. Be sure that the customer service rep understands that you do NOT want an increase if it’s going to result in an inquiry that dings your score. At most, you’re looking for nothing more than a soft pull — which is an inquiry that does not result in an inquiry that hurts your score.When it comes to credit cards, be proactive. Get on the phone and get everything that you and your account deserves. If you’re a model customer, your APRs and credit limits should reflect it. Related Articles:American Express Appears to be Stepping Up Its Slash and Burn CampaignAmerican Express Rates Credit Risk By Where You Live, Shop