18 Oct
Posted by: Recovering Sucker in: Credit Cards, Frugal Living, Personal Finance
As I was reviewing some of our financial accounts, I realized that pay a pretty good bit of money in interest to an American Express card that I have. I use this card for a business that we own which stocks inventory, and as a result I am constantly charging large amounts to it as well as making payments. I’ve had the card since 2000 and have never made a late payment. I also have good credit. All of these play into what your interest rate is on a credit card… but the getting a lower rate really boils down to one thing, and as simple as it is, I have never gotten around to it.
What is this secret to credit card bliss you wonder?
I spent a few minutes the other day jamming out a quick email to Amex and asked them (nicely) to lower my interest rate. Here is what I sent:
Hello,
I would like to ask for a review and reduction of my interest rate. I am pleased with the service I receive from American Express and use my cards for almost everything. I have been a loyal customer for many years and carry a large balance on my blue card. That being the case it has reached the point where I have to evaluate whether my blue card is the best place for me to keep the balance. My wife and I have another card with an 8.9% but a zero balance because I use the Amex. If you could meet or beat that rate, I would be sincerely appreciative.
Thanks.
Their response was just over 24-hours later…
Please excuse our delay in responding to your e-mail.
In your recent e-mail to us, you requested a lower interest rate. We have reviewed your account and determined that your current Annual Percentage Rates (APR) are as follows:
Purchase Rate: Prime 10.99% Fixed
Cash Advance Rate: Prime (5.00%) plus 14.99%, which is currently 19.99%
Balance Transfer Rate: 10.99% FixedBecause you are a valued Cardmember, we have reduced your Annual Percentage Rate(s) to the following:
Purchase Rate: 6.99% Fixed
Cash Advance Rate: Prime (5.00%) plus 14.99%, which is currently 19.99%
Balance Transfer Rate: 6.99% FixedThis change will be reflected on an upcoming statement. Please keep in mind that interest rates are subject to change, according to the terms and conditions of your Cardmember Agreement.
We appreciate your Membership since 2000 and if you have any further questions or concerns, please contact
Sincerely,
[Rep Name Removed]
Email Servicing Team
American Express Interactive Services
That simple email dropped my interest rate 4 points (36% lower). If I consider the interest I would pay over a year, that one email paid me the equivalent of $42,000/hour for 2 minutes of work. Now that’s a valuable use of time and it’s money that I can put toward paying off debt.
Try it. . . I think you’ll be surprised how easy it may be to save some money each month.
One Response
Credit Card Companies Lowering Limits or Cancelling Unused Cards by Recovering Sucker
31|Oct|2008 1[...] I have carried a balance on it that is very close to the limit. (It’s also the card that Amex lowered my interest rate from 10.99% to 6.99% on.) The other four unused cards have credit limits of $13200, $9600, $7400, and [...]
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