• Thursday, 18 July 2019

In Past Year, More Than 8 in 10 Cardholders Who Asked for a Lower APR Were Successful


Apr 19, 2019 (3 months ago) |
CHARLOTTE, N.C: More than 8 in 10 credit cardholders who asked for a lower interest rate in the past year were successful, according to a new report from CompareCards.com. However, too few people take the time to make that call - and women are the most likely to leave that money on the table.
CompareCards asked more than 1,000 credit cardholders whether they requested any of the following from their card issuers in the past year a waived or reduced annual fee, an increased credit limit, a waived late fee and a reduced APR or interest rate. The results revealed that significantly more than half of those who ask - and sometimes more than three in four who ask - received a positive response. Yet, most Americans still don't ask, and oftentimes it's because they don't know they can initiate these types of requests.

Key findings

Eighty-one percent of those who requested a reduced APR in the past year were successful, but just one in five cardholders asked.
The average APR reduction was about 6 percentage points.
Of those who asked to have a late fee waived in the past year, 87 percent were successful. Almost half (48 percent) of those who incurred a late fee asked for a waiver in the past year.
Seventy-nine percent of those who asked to have a credit limit increased in the past year were successful.
The average increase was about $1,500.
Of those who asked to have an annual fee waived in the past year, 67 percent were successful, while another 24 percent had their annual fee reduced.
Men are more likely to ask for these breaks, but there's little difference in the success rate between men and women among those who ask.
By far the most common reason given for not asking I didn't know that I could. I didn't think I'd be successful was also a common answer.

For the many Americans carrying debt, you're doing yourself a disservice by not at least picking up the phone and making one of these requests, said Matt Schulz, Chief Industry Analyst at CompareCards. That's especially true when it comes to lowering your interest rate. If you carry a balance, reducing your interest even a few points will significantly reduce how much interest you pay over time and how long it takes to pay it off.

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In Past Year, More Than 8 in 10 Cardholders Who Asked for a Lower APR Were Successful

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