One of the reasons consumers look into credit repair is to get better rates on home mortgages, car loans, insurance rates and, of course, credit card interest rates. Credit card rates are often the most atrocious of all rates, sometimes reaching nearly as high as 30 % in annual interest rates.



But if the poor economy has had any positive effect, it is that companies are becoming more understanding and flexible when it comes to maintaining hard-to-find customers, especially those with good payment histories.

As one online author put it: “The squeaky wheel gets the grease.” In other words, when looking for reduced credit card interest rates, the first step is to try and negotiate better rates. You'll never know if you're eligible for better rates until you call and find out.

Several online articles on the subject cite a better than 50 % success rate in getting interest rates reduced, with results ranging from seven to 10 % in rate reductions.

The people with the most success seeking reduced rates are clearly going to be those with the best credit histories. Consumers that meet some of the following criteria are going to have the most success in seeking reduced rates:

• Consumers with good credit scores. This is true from the very beginning, really — consumers with the best credit scores get the best rates. So it only stands to reason that a good credit score can continue to benefit the consumer, even after the fact.

• Consumers with good debt-to-limit ratios. This is one of the most important factors in determining credit scores, and a good reason to carry more than one line of credit. Each additional credit card increases your overall limit. And by keeping the overall balance at 25 % or less of the overall limit, a consumer can establish themselves as a responsible credit user who makes timely payments and maintains good spending habits. Of course, this means taking on only credit that the consumer can continue to afford.

• Consumers who make more than minimum payments. Just like in the previous bullet-point, making payments that exceed minimum payments proves responsible usage of credit, thus convincing a credit card company that you are a good candidate for lower interest rates.

• Consumers who have an excellent payment history. The consumers who pay their bills on time are looked on most favorably by creditors and lenders.

• Consumers who have credit cards not categorized as “sub-prime,” meaning secured credit cards or credit cards marketed to consumers with bad credit.

For consumers that fall into any of the aforementioned categories, it may be a safe bet that a lower interest rate is available. Based on favorable criteria, consumers should then research other credit card companies, find the best interest rates available elsewhere, and leverage that information against their particular creditor. This is particularly effective if the consumer already has a good credit score to fall back on. However, it can still be effective if the customer has a proven track record with the credit card company and can argue that they are a valued customer, deserving of a better rate.

In the end, it pays for consumers to remember that desperate times bring out the best and worst in all manner of financial institutions. Gathering new customers is an expensive endeavor for credit card companies, so it pays to leverage good credit scores and responsible financial behavior wherever and whenever possible so that you can make the most out of your current financial situation.