Credit card lenders less likely to lower rates
In the past, consumers with strong borrowing histories could obtain a lower interest rate on their credit card debt by calling their lender and asking for one. However, this is no longer the case.
Many consumers who once would have been able to call their lender and request a lower interest rate on their credit card have found that they no longer have success with tried and true tactics of the past, according to a report from Wausau, Wisconsin, television station WAOW. Many banks have curbed or completely eliminated the practice of granting even consumers with outstanding borrowing histories lower interest rates.
There may be two reasons for this, the report said. The first is that the new restrictions from the federal government has led many lenders to look for new ways to maximize revenues. Secondly, the high number of defaulted accounts seen during the recession has led many institutions to take a hard-line stance against altering consumers’ borrowing agreements.
The only way many consumers may be able to get a lower credit card interest rate is by transferring a balance to a new card.