Credit card banks jockey for position in the industry based on their "out standings". This is the amount of money owed to them by their creditors (us). They want our business and often times they will do whatever it takes to keep us as a customer, including lowering our APR. Here are some hints in how to get your credit card company to give you a more favorable rate on your credit card:

First of all, make sure you are the kind of customer they value. Every bank keeps their own internal "scores" on their customers. The higher the score, the more they will do for you. The way to prevent a low score is simple. Do not pay late, do not go over limit, and be sure to use your card once in a while. You don't have to revolve a balance, but maintaining an active account in good standing is crucial.

The best way to bargain for a lower rate is to simply tell your credit card company that you are thinking about jumping ship to a competitor. Every major credit card bank has a department for the sole purpose of retaining customers. This is where you want to be transferred, for these folks have the power to alter your APR. Assuming your score is good, you should be able to speak with this department. In order to get transferred, you must convince the regular representative that you mean business.

Some of the lines that work well are:

• "I don't even want to carry this card in my wallet anymore with this kind of APR!"
• "I'm thinking about closing this account because the APR is just too high compared to other cards."
• "My friend just got an offer from you at 9.99%. I've been with you for a while, what can you do for me?"
• "I'm thinking about transferring my balance to (name of competing bank) because their APR is much lower."

You can use the gromco's credit card search feature to get an idea of the rates that are available among the banks, and be prepared to give examples.

Hopefully, you will speak with someone who can impact your APR and is willing to make a deal to keep your business. By the way, if at first you don't succeed, try and try again. You may get a friendlier person the next time you call. :)

By maintaining a good record with your credit card company and using this tactic a couple of times a year, you should be able to keep your account at the lowest possible rate with that issuer.