Negotiating credit card APR can be difficult if you don't know the right techniques to use. There are a few simple steps you can learn to make sure you have the best interest rate possible.

A lower interest rate on a credit card can potentially save you a hundred to four hundred dollars a year, depending on your current credit card balances. However, negotiating a lower interest rate doesn't work for everyone, because the companies have been making it harder for consumers to get a better deal. Part of the reason for this difficulty is the recent credit crunch. Banks and lenders were unprepared for the credit crisis and therefore they have a lot of individuals defaulting. Before we get into the instructions of how to negotiate a lower interest rate we will look at a few things that might get in your way.

Universal Default and Fixed Interest Rates:

Universal default states that the credit card companies may raise your interest rate to the highest available if there is a change on your credit report. For example if you have an application for a house loan that ran your credit report, your score will be reduced by a few points. This reduction means the company can increase your rate because you are more of a risk. If universal default has been instigated by the company they may be unwilling to lower your interest rate.

Fixed interest rates will also be very hard to reduce. A fixed rate by nature means that for the life of a line of credit you will have the same interest rate. You can elect to have the fixed rate changed to a variable interest rate, but then a universal default may play to where you enjoy 13.99 percent for three months and it spikes to 30 percent.

Negotiating Credit Cards APR:

The first thing you need to do when negotiating for a lower interest rate is call the credit card company. The credit card company is going to look at your account details, and depending on the company you are with, they may have promotional deals for their current customers. These "deals" usually offer a lower credit card APR or balance transfer option.

Deals are not the only way to negotiate a lower rate. If you have a long history with the company you can ask them to change your interest rate to the lowest available rate, especially if you have a good history as well as a long history.

If this doesn't get you a lower rate, you can also suggest that you will be taking your business elsewhere as you have compared your current card with other credit card companies. In some cases a manager may take over to work with you. Most credit card companies don't want to lose business.

The Last Resort

If a manager is unable to help you then you should close the account by transferring to another credit card that offers a better rate and that is willing to work with you. Sometimes the company may negotiate back. In this case they may offer a different card than the account you have. Even for those of you who have only had your card for a year, try to negotiate for a lower rate. You would be surprised at where that will get you.