- 70% of those who asked for a lower April last year got one.
- Only 15% of cardholders requested a lower APR last year.
- The average decrease of SEPE was 6.9 percentage points.
- In last year’s survey, 83% of those who asked for a lower APR were successful, a difference of 13 points from the findings of this year’s survey.
- Annual fee exemptions or reductions (from 92% last year to 90% this year) were still the most likely request to be met.
- A higher credit limit (from 83% to 84%) was the second most likely.
- Balance transfer fees and overseas transaction fees are more likely to be waived. The success rates for these requests improved by 5 points compared to last year, increasing to 61% and 58% respectively.
- Men are constantly asking for more breaks from their card issuers than women. The gap was larger when it came to late fee waivers (21 percentage points difference), although women were slightly more likely to be charged late fees (24% vs. 23%).
“When you combine these strong odds with the amount of money you can save, especially when your card APR is low, there is no doubt that it is worth asking,” he said. Matt Schultz, Chief Credit Analyst at LendingTree. “However, there are not enough people. The two biggest reasons not to ask? People did not know they could and did not think they would succeed. We hope to put an end to these misconceptions and help consumers realize the power they have.”
Schulz adds, “These findings should also warn that people should make these requests sooner rather than later. For example, we do not know if issuers will continue to be more stingy about reducing cardholder APRs.” However, as the Federal Reserve is likely to raise interest rates several times this year, making it more expensive for banks to lend money, it is a distinct possibility that issuers will continue to be less receptive to those asking for lower interest rates, commission exemptions or better terms. ».
How to ask card issuers for better terms:
- Lower Apr: Use other credit card offers or current APRs advertised on the publisher’s website. If you have good credit and do not receive the best possible interest rate, ask them to change it.
- Annual subscription: Issuers may not waive all charges, but may offer to reduce the charge or offer extra points, rewards, or other options. Think about what you will accept before you ask.
- Delay fees: You probably do not need to do much more than ask politely. If you are a first time offender, it is very likely that you will give up in the end. Cardholders who usually delay their payments will not be so lucky. Setting up an auto payment feature can help convince publishers that you are serious about repaying.
- Higher credit limit: If your income has recently increased, getting a higher credit line can be as simple as notifying your publisher of the change. It may also be wise to tell your issuer that you are asking for a higher limit to enhance the use of your credit – how much debt you owe compared to your available credit – and to help your credit score.
To see the full report, visit: https://www.lendingtree.com/credit-cards/study/asking-for-lower-card-apr/.
LendingTree commissioned Qualtrics to conduct an online survey of 1,224 credit card holders, March 10-15, 2022. The survey was conducted using a non-probability sample and quotas were used to ensure that the sample base represented the total population. All responses were examined by researchers for quality control.
LendingTree is the country’s leading online marketplace that connects consumers with the options they need to be confident in their financial decisions. LendingTree enables consumers to shop for financial services the same way they shop for airline tickets or hotel accommodation, comparing multiple offers from a national network of over 500 partners in a single search and choosing the one that suits them best. better to their financial needs. Services include mortgages, mortgages, car loans, personal loans, business loans, student loans, insurance, credit cards and more. Through the LendingTree platform, consumers receive free credit scores, credit monitoring and recommendations for improving credit health. LendingTree proactively compares consumer credit accounts with offers on our network and alerts consumers when there is an opportunity to save money. In short, the purpose of LendingTree is to help simplify financial decisions for important life moments through choice, training and support. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information, go to www.lendingtree.comcall 800-555-TREE, like our Facebook page and / or follow us on Twitter @LendingTree