Interest charged on your credit card may be negotiated with the lender or concerned bank.

Earlier it was possible to negotiate a lower APR by making a request over phone. However, after recent economic crisis, lenders have become more skeptical and rigid. Lowering APR of your credit card may not be as simple as before but it is not impossible. You may need to do some homework and be prepared before attempting to negotiate a lower APR on your credit card.

Before you start preparing for negotiation be aware of the risk associated with it. Your request may trigger a critical look at your credit profile. You may be required to submit necessary papers of income tax returns. In case they don’t like the papers and your credit report is not satisfactory then the bank may decide to lower your credit limit than lowering APR.

A lower credit limit increases utilization ratio of the card affecting your credit score adversely. So before you step out to request a lower APR of credit cards make sure to have your records straight.

Here are some simple tips to help you prepare for negotiation.

Evaluate your outstanding credits and how you are dealing with them. Check your credit score and make sure you are above 740. How many rejected credit applications and late payment penalties have you faced recently?

Compile a list of such information and get details as far as possible. Check the credit report and make sure there are no erroneous entries. Some applicants obtain a credit report from the agency that the credit card company uses.

The credit card company may request for additional information and documents for considering your request of lowering APR. Usually these are not included in your credit report. Proof of recent income and proof of employment are likely to be asked by the credit card company.

Be prepared with a back up plan. Get hold of a low interest credit card. Such cards offer a period of low interest as promotional offer. If your credit report is good, you are enjoying a stable job and regular income then you should be demanding. If you are denied lower APR then tell them you want to transfer the balance to the low interest card. In most cases, in fear of losing a good customer credit card companies may change their mind.