Why Negotiation Works
Banks don't want to lose customers. Acquiring a new customer costs them $200-400, so they'd rather give you a better rate than lose you to a competitor. Studies show that over 80% of people who ask for a lower rate get one.
The worst they can say is no - and you lose nothing by asking.
Before You Call
Know Your Current Rate
Check your statement or online account for your APR.
Check Your Credit Score
A good score (700+) gives you leverage. If it's improved since you opened the account, mention it.
Research Competitor Rates
Know what other banks are offering. "Bank X is offering 0% for 18 months" is powerful leverage.
Review Your Payment History
On-time payments are your strongest argument. Know how long you've been a customer.
The Script: Credit Card APR
Call the number on the back of your card and say:
"Hi, I've been a customer for [X years] and I've always paid on time. I've noticed my APR is [current rate], which is higher than offers I'm seeing from other cards. I'd like to request a lower interest rate. What can you do for me?"
If they say no: Ask to speak with a supervisor or retention specialist. They have more authority to make changes.
The Script: Bank Fees
"I was charged a [fee type] of $[amount]. I've been a loyal customer for [X years] and this is the first time this has happened. I'd appreciate it if you could waive this fee as a courtesy."
Success rate: Very high for first-time requests. Most banks will waive 1-2 fees per year automatically.
What You Can Negotiate
- Credit card APR: Often reduced by 2-5 percentage points
- Annual fees: Many banks will waive or reduce them
- Overdraft fees: Usually waived as a one-time courtesy
- Late payment fees: Often waived for first offense
- Loan interest rates: Harder but possible with good credit
- Mortgage rates: Compare lenders and ask each to beat the other
Pro Tips for Success
- Be polite but firm: Kindness goes a long way with customer service
- Call at good times: Midweek, mid-morning tends to have shorter waits and happier reps
- Mention competitor offers: This triggers retention mode
- Ask for a supervisor: If the first person can't help, escalate
- Follow up in writing: Get any agreements confirmed via email
- Try again later: If denied, wait a few months and try again
If Negotiation Fails
If your current bank won't budge, you have options:
- Balance transfer: Move debt to a 0% APR card
- Personal loan: Often lower rates than credit cards
- Switch banks: Take your business elsewhere
- Credit union: Often offer better rates than big banks