Credit Card: Banks will never want you to know this trick; this way your credit card interest will be reduced..

Credit card interest rates in India are very high. They average 36% to 45% annually (3-3.75% monthly). Most people believe that the annual interest rate charged on credit cards is fixed and cannot be changed. Banks want you to believe this. However, the truth is that if you have a good record, you can negotiate a lower interest rate with the bank.

When does the bank listen to you?
Banks only relent when they believe the risk of losing a customer is high. If you have a clean payment record, you have been a long-standing customer of the same bank, and you have a good credit score, your position is strengthened. Importantly, a timely request is more effective. Banks consider requests made after 6-12 consecutive months of on-time payments more seriously, while requests made after recent late payments are often rejected.

How to Have a Conversation That Makes an Impact
This is not a complaint call, but a retention conversation. Ask customer care to connect you with the retention or relationship team. Explain clearly that your current interest rate is too high for you and that you're considering other options. If you've received a lower-rate offer from another bank, mentioning it can be beneficial. Focus on data rather than emotions during the conversation.

What Options Can the Bank Offer?
Banks don't always permanently reduce interest rates. Sometimes they offer a lower rate for a few months or offer the option to switch to a lower-interest card. In some cases, options like converting the outstanding balance into EMIs or balance transfers can also be offered, which can reduce the overall interest burden.

What to Do If the Answer Is 'No'
Even if the bank refuses outright, the options aren't closed. A balance transfer to a lower-rate card or, if necessary, taking a personal loan to pay off the expensive debt can also be strategies. With prudence and discipline, high credit card interest can be significantly reduced.

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