Credit Limit Increase and Interest Rate Decrease
It’s amazing what a simple phone call can accomplish. I’ve always read and heard that credit card companies will raise limits and lower rates just by giving them a phone call. I decided to try it out with my Discover Card. I called up the number on the back of my card, eventually got to a customer service representative, and asked for both a credit limit increase and a interest rate deduction. She was able to get me both. I now have $1,500 extra limit and a 2% lower rate. All told, took about 5 minutes on the phone. Now I’ve never actually carried a balance on this card, so the interest rate doesn’t help all that much, but this could potentially save you a couple hundred bucks a year if you are carrying a balance.
I was so excited after calling Discover, I tried to pull the same trick on my Capital One card. After about 10 minutes with their automated service, I finally found an automated option to request a credit increase. After selecting it, I got a very unfriendly message that my card wasn’t eligible for a limit increase, “either though the automated service or through a customer service representative.” By that point, I was so fed up with automated menus and that rude message, I just hung up without bother trying to ask for a interest rate decrease. Two thumbs down to Capital One.
I guess this trick is really dependent on your credit card company, but it’s worth a shot.
Posted on Monday, February 26, 2007 @ 4:58 pm by BudgetFreak
Filed Under: Credit Cards
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on 27 Feb 2007 at 12:02 pm 1.Melissa said …
I hate capital one. But I do have a providian card. I talked them from having me at an 18% interest rate down to 8% base but usually it’s around 9%-10%. Not bad!
Just have to be stern!!
on 27 Feb 2007 at 12:55 pm 2.BudgetFreak said …
Yeah, Capital One sucks. Awesome job on the rate decrease! 10% decrease is impressive!
Another tip: When you’re on the phone with your credit card company, it’s a good idea to mention other credit card offers you’ve recieved. Credit cards try to compete for your money, so if you currently have a 18% APR, and mention so and so are offering a 9% APR (for example), your credit company has more incentive to act.