#How to Lower Your Credit Card Interest Rate

Follow these five easy steps to reduce your APR.

A high-interest rate can do to your credit card debt what too much birthday cake can do to your young child.

It revs it up, before eventually spiraling out of control and leaving you feeling helpless and hopeless as you watch the aftermath.

Unlike the inevitable sugar crash from birthday cake overload, however, the end of the credit card debt spiral is anything but certain. High-interest rates don’t just fade away, after all.

The good news is that those interest rates don’t have to be high forever. It may take a bit of work, but with perseverance and preparation, there’s a good chance you can drive those sky-high rates lower. And when it comes to getting a handle on your credit card debt. that’s one of the most important things you can do.

Say you have $5,000 in debt on a credit card with a 20 percent APR. If you pay $150 per month, it’ll take you 50 months and $2,360 in interest to pay off that debt.

Reduce that interest rate to 15 percent – roughly the national average for a new credit card today – and you save roughly $800 in interest and six months of payoff time. Drop it to 12 percent, and you’re saving more than $1,200 and nine months.

In short, it’s a big deal.

But banks aren’t in the business of just giving anyone a break on their interest rates, so how do you make it happen? Here are some tips to score a lower interest rate:

Your chance for success is far higher than you might think. Two-thirds of cardholders who ask for a lower interest rate are approved. You read that correctly. That was the result of a CreditCards.com survey of 983 credit cardholders last year. It’s shocking, but it is also great news for consumers.

Now, not everyone will be successful, of course. The more educated you are and the wealthier you are, the more likely you are to get a break. The survey found that credit card customers who graduated from college and earn more than $75,000 were more likely to be granted a lower interest rate. But, according to that survey, even cardholders at lower incomes and education levels still have a good chance of getting their wish.

Gather up other offers. The credit card industry is so competitive today, especially if you have decent credit. If you do, chances are you’ve received some card offers in the mail or seen some online. Before you ask your current issuer for a break on your card’s APR, collect all the offers that you can and make some notes.

You want to be able to say something like this to your issuer: “I’ve gotten multiple offers for cards with an interest rate of 12 percent and no annual fee. My APR on my current card is 19.9 percent. I’d love to stay with your bank, but it’s hard to justify keeping that high of an APR since I’ve gotten these other offers. I’ve been a good customer. Is there anything you can do?”

Be sure that “better deal” is really a better deal. There’s much more to a credit card than an interest rate. Look at annual fees, rewards and other terms. If it’s a balance transfer card. check how long the introductory period lasts, but also see how fast you have to transfer your balance in order to get that deal. Also make sure you know what the card’s APR is once the introductory period passes, and be wary of high balance transfer fees.

Keep your nose clean. The better your credit history, the more likely you are to get a break. Make sure you haven’t missed any payments recently. Pay down your current cards as much as you can. Don’t apply for other loans. Do whatever you can to make sure your credit looks as perfect as possible. If that means holding off a few weeks or more on asking for a break, that’s OK. If you’re successful in getting your APR lowered, it will have been worth the wait.

Be nice, but don’t be afraid to walk. This is a negotiation. When you make the call, be calm and ask to speak to a manager. When you’re speaking with her, be polite, state your case clearly and calmly – as described earlier in this piece – and cross your fingers for a good response.

If they don’t give you the answer you want, tell them again, calmly, that if they can’t lower your interest rate, you will no longer use their card. If they grant your request, great. If not, thank them for their time, end the conversation – and go apply for one of those cards with better terms .