How To Negotiate Lower Interest Rates With Your Lender

Interest rates are up, and it's making debt a lot more expensive. But I've got you covered. Besides this [free negotiation script] to help you negotiate lower interest rates with your lender I've also got 3 different ways you can lower your interest rates an tips to get the task completed.

Three Ways To Lower

Your Interest Rates

• Balance Transfer: If you have credit card debt with a high interest rate, you may be able to lower your interest rate by transferring your balance to a credit card with a lower introductory rate. {FYI: Most balance transfer introductory offers will come with a 0% introductory rate from 0-18 months) Be sure to read the fine print and or ask all the questions you need so you have a clear understanding of any fees associated with the balance transfer. The point is to 1)lower your rate and 2) give you some time to pay on your debts with out high interest eating away at your monthly payments.

• Shop around for the best interest rate: This step works in your benefit for two reasons. The first reason: at the end of the day lenders are in competition with one another. That means even during difficult economic times, lenders are going to offer different interest rates, so it pays to compare as they compete. Similar to car insurance, cable + internet...etc you want to shop around for the best possible rate. Look into banks, credit unions and online lenders as you search for a manageable rate. And what's the second reason? Well future millionaire, that leads us into option #3

• Negotiate with your lender: The best way to know if you can have something... is to ask. If you have a good credit score and a history of making on-time payments, it is a good idea to simply negotiate a lower interest rate with your current lender. The icing on the cake is by shopping around you know what is out there which makes your case even stronger. Reaching out to your lender (using the scripts below) and explain your current financial situation and why you believe you deserve a lower rate. 

BONUS: Refinance your loans 🚨 Proceed with informed caution 🚨 If you have a high-interest loan, such as a credit card or auto loan, you may be able to refinance it to a lower rate. Please note this involves taking out a new loan to pay off the old one, and can be a good way to save money on interest in the long run. A second thing to note, with the feds raising rates the way they have been in the last year, a lower rate is not as likely as it used to be! Before refinancing exhaust all other options and ensure that you are in fact getting a lower fixed rate than your current lender is offering.

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GRAB YOUR FREE NEGOTIATION SCRIPT HERE !

Tips to help you negotiate

with your lender 💡

TIP 1: Remember that you attract more flies with honey than vinegar! This practice is a courtesy (one you absolutely deserve) but at the end of the day a courtesy none the same. We also treat customer service reps with 1000% respect because they certainly don't get paid to deal with the amount of BS they have to put up with. So I say all of that to say this... whichever script you use... start by thanking your lender for their time and expressing your desire to continue working with them. [Kindness goes a long way]

TIP 2: Try to focus on asking open ended questions instead of ones that can easily be answered with a swift "no" For example you don't want to ask: "Do you think that you can lower my interest rate?" Instead try something like, "Can you tell me more about my options when it comes to the interest rate for this account?" 

TIP 3: Clearly and succinctly explain your financial situation and why you think you deserve a lower interest rate. For example: A good credit score, a stable income, a history of on time payments. You can also mention the length of time you've had this account open to show you are a loyal customer in good standing. 

TIP 4: Have supporting documentation ready! This can include things like proof of income or your credit report to strengthen your case.

TIP 5: If the agent you're on the phone with is unwilling to lower your rate, ask if they can offer any other solutions, such as a loan modification or a payment plan. (remember tip 2 - ask in a way that keeps the conversation going and doesn't make "yes" or "no" responses possible)

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Until next time,