A simple guide to opting out of spam emails
Find an easy way to stop unwanted spam and credit card offers by using a trusted opt-out website.
You blame yourself for increasing the balance, but you’re angry that the interest rate on that credit card is 20%.
But have you ever thought about asking for a lower rate?
Credit card interest rates are hovering near historic highs. As of July 8, the average interest rate on cards is about 19.6%, according to a Bankrate report. This is about 1 point below the all-time high of 20.8% set in August 2024.
Cardholders may feel locked into that high rate. But as it turns out, it’s very easy to convince banks to lower interest rates.
LendingTree reports that more than 80% of cardholders who requested a lower interest rate in the past year were successful.
The personal finance site has been surveying Americans about credit card fees for several years. This year’s study found that 84% of cardholders who requested a lower interest rate got one, the highest success rate since LendingTree began its study.
The average consumer enjoyed a rate reduction of 6.3 percentage points. With this reduction, the interest rate will be lowered from 19.6% to 13.3%.
“This is not a new phenomenon,” said Matt Schultz, chief consumer finance analyst at LendingTree.
“This is not an inflation-era phenomenon, this is not a pandemic phenomenon. This is just something banks are doing. And the chances of people getting their way are much higher than they think. But they have to ask.”
Credit card interest rates are near record highs
Credit card interest rates have risen sharply in recent years. As of February 2022, the overall average credit card utilization rate was 14.6%, according to federal data. Interest rates soared over the next two years as the Fed raised its benchmark rate. By February 2024, the average card usage rate was 21.6%.
But the Fed is only partially responsible for these rate increases. Interest rates on cards are higher than they’ve ever been, including when other interest rates were higher than they are now.
Credit card companies are charging record margins. This is the interest rate, or interest margin, that the card issuer charges over and above the prime loan rate.
WalletHub reports credit card margins average 14.8% as of February. In other words, the average cardholder is paying nearly 15% annual interest on top of the prime rate. In theory, the prime rate is what interest rate lenders charge their most credit-worthy customers.
Card companies say they charge high margins to cover costs, such as when cardholders don’t pay.
About 13% of credit card balances nationwide were at least 90 days past due in the first quarter of 2026, according to a New York Fed report. This number has not been this high since 2011, when the country was recovering from the 2008 financial crisis.
Want a lower card rate? Just ask.
However, just because card rates and margins are high doesn’t mean credit card companies won’t lower card rates, LendingTree reports.
According to LendingTree’s research, success rates were even higher when consumers called their card issuers and asked for fee waivers.
LendingTree reports that 92% of late fee forgiveness requests were granted last year. Additionally, 94% of cardholders were able to have their annual fee waived or reduced.
If banks need to charge high interest rates and fees to make a profit, why do they regularly waive fees or lower interest rates?
The answer, Schultz says, lies in long-term relationships between banks and their customers.
“Banks look at customers in terms of lifetime value,” Schultz said. “And they know that if they waive the $30 late fee, they’ll create so much goodwill with that customer that that person will probably stick around and probably spend more money than they otherwise would have.”
Schultz said he’s surprised that more consumers aren’t asking for breaks.
In 2026, only 23% of cardholders said they had asked their issuer to lower their interest rate. In addition, only 54% of delinquent applicants asked for their late fees to be waived.
“A lot of people don’t think it works,” Schultz says. “And it does. The data clearly shows that’s the case.”
LendingTree’s survey was conducted in May among 2,000 U.S. consumers.
Autoresponders can also lower your card’s rate
Mr. Schultz himself has occasionally been a day or two late on his credit card payments. That alone will incur late fees.
Last year, Schultz logged into his Chase app and discovered two late charges.
“When I saw this, I immediately picked up the phone and asked Chase to waive the fee,” Schultz wrote in a post on Substack. “I’ve done this successfully with other card issuers in the past, and I didn’t expect it to go my way this time either.”
It didn’t just work. Mr. Schultz didn’t even need to talk to humans. As soon as the autoresponder verified his identity, it asked if he was calling about a late fee.
“I said yes,” Schultz wrote. “The automated system then offered to waive the late fee on my card as a one-time courtesy.”
Schultz has been asking consumers about their negotiations with credit card companies for years. This research inspired him to write a book about taking control of one’s financial life.
Schultz said negotiating lower interest rates can be a great way to get out of credit card debt.
Two more ways to reduce credit card debt
Here are some more tips to help you dig it out.
zero annual percentage rate credit card
One of the best ways to pay off a high-interest credit card is to use another credit card that doesn’t charge any interest.
Zero APR cards allow consumers to make purchases without paying interest during a 12-, 18-, or even 24-month promotional period.
Once the promotion ends, interest will only accrue on the debt remaining on the card.
According to credit experts, zero-APR cards are especially effective for consumers with high credit scores and relatively little card debt.
nonprofit credit counselor
Cardholders with bad credit or high balances may want to consider nonprofit credit counseling services. A credit counselor can help you consolidate your debt and negotiate lower interest rates to help you pay it off.
Credit experts say cardholders may be able to negotiate a 6-point reduction in their card’s interest rate, but credit counselors can lower it by 10 to 15 points or more.
