A study by online financial marketplace LendingTree® for Financial Literacy Month found that of the 15% of cardholders who asked their credit card company for an APR reduction in the past year, 70% were successful.
That’s a 13-point drop from 2021, when 83% of similar requests met with success. Success rates for other popular requests, such as a waived or reduced annual fee, remain high—making that low 15% figure a sign that cardholders aren’t taking advantage of the true power they have.
To help you flex your financial muscles, cut your expenses, or even reduce your credit card debt, insurance
specialist and broker app Jerry
is here to break down the results of the study. Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds
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A 70% chance of approval for an APR reduction is great news for cardholders, even if it’s a little harder than last year. But other common requests remain as successful as ever:
Waived or reduced annual fee: 90% approval rate (vs. 92% in 2021)
Higher credit limit: 84% approval rate (vs. 83% in 2021)
Waived late fee: 84% approval rate (vs. 86% in 2021)
Changed due date: 73% approval rate (vs. 66% in 2021)
Waived balanced transfer fee: 61% approval rate (vs. 56% in 2021)
Of those requests, the most common is a waived late fee, which 41% of cardholders in 2022 and 72% of cardholders in 2021 requested. For other reductions and waivers, though, the rate of requests remains quite low.
“People didn’t know they could [ask],” says LendingTree Chief Credit Analyst Matt Schulz, “and they didn’t think they’d be successful.” Even though an APR reduction of just 7 points could save you hundreds of dollars and help you pay off your debt faster, cardholders remain hesitant.
Don’t wait to ask for a reduction
Schulz warns that cardholders “should make these requests sooner rather than later.” Why? As interest rates climb in 2022, you can expect credit card issuers to become a little more cautious when it comes to cutting customers breaks on things like APR, late fees, and credit limits.
If you’ve never made this kind of request from your credit card company before, you’re in good company! Follow these tips to set yourself up for powerful bargaining:
Find other APR offers to use as a starting point for negotiations. Ask, “Can you match this offer I received recently?”
Don’t expect a full waiver for your annual fee. Although it’s not impossible, it’s more common for issuers to offer perks, reductions, and other alternatives. Decide before you call what you’ll be willing to accept.
Let your card issuer know about any increase in your income. Finally landed a full-time position after a spell of pandemic unemployment? Update your credit card company and ask if they’ll give you a higher credit limit now that you’ve got the finances to cover it.
The bottom line: it’s definitely worth your time to ask for a lower APR or fee waiver. After all—the worst they can do is say no!
Another no-fail financial move? Shopping for a new car insurance policy with Jerry
. By partnering with over 50 of the nation’s top insurers, Jerry finds an average of $800+ in annual savings for customers who compare rates in the app—and looking for quotes is totally free! RECOMMENDEDNo spam or unwanted phone calls · No long forms
