One of the key factors in high credit card debt is the high-interest rates that come along with it. When getting your first credit card, you likely will not be able to get a fantastic interest rate and will have to deal with something that could be detrimental to your financial health. Luckily, it’s possible to get out of your high-interest rate. Many credit card companies are willing to negotiate a lower interest rate for loyal customers, but it’s not as easy as just asking for a lower interest rate. You must be prepared to convince them that you are deserving of that lower interest rate. Here are a few tips to help you negotiate a lower interest rate.

Prepare All Relevant Info

The first thing you’ll want to do before going to your bank is to make sure you have any and all relevant info on hand. You’ll likely need your existing balance, current APR, statement due date and your card current terms. You’ll also want to do some budgeting in order to figure out how much you can afford to pay your creditors every month. Most importantly, find out what your credit score is, because the higher your score, the more leverage you’ll have.

Make Sure You’re Credit Healthy

The first thing credit card companies are going to look at is your credit health. When banks see their customers are paying off their credit cards on time, and paying more than the minimum, they tend to be more lenient when it comes to lowering interest rates. Companies will specifically look for past late payments, how long you’ve had the card, your credit limit, the amount you owe, and the amount you owe on all of your cards put together. If these requirements aren’t met, you’ll want to take some time to make payments and lower your balance. Creditors will begin to take you more seriously once they’ve seen you’ve made the effort to change your bad habits.

Find Competing Offers

The most important thing to a credit card company is that they retain their customers. They want to make money, and can’t do that if their customers leave for another company. They understand that their customers will seek the best deals, and will use that to leverage why they’re the best choice. When you go to negotiate, bring a few competing offers to them to show that you’re serious. They’ll be more likely to agree to your terms if they’re fearful of losing a potential customer.