How to negotiate for a lower interest rate

If you are like most people, you probably don’t enjoy negotiating. It can be stressful and it feels like you are putting your fate in someone else’s hands. However, when it comes to getting a lower interest rate on your credit cards, mortgages, auto loans, or student loans, negotiation is the key to success!

Credit Cards:

If you have a good credit score, you have negotiating power. Call your credit card company and tell them you are considering transferring your balance to another card with a lower APR. Most companies will lower your interest rate to keep you as a customer. If they don’t, be persistent and ask to speak to a supervisor.

 

Mortgages:

Your mortgage is probably the biggest loan you will ever take out, so it is important to try to get the lowest interest rate possible. Start by checking rates from different lenders and then call your current lender to see if they can match or beat the rate. If they can’t, don’t be afraid to shop around for a new lender.

 

Auto Loans:

If you have good credit, you may be able to get a lower interest rate when purchasing a new or used car. Start by checking rates from different lenders and then call your current lender to see if they can match or beat the rate. If they can’t, don’t be afraid to shop around for a new lender.

 

Student Loans:

If you have private student loans, you may be able to negotiate a lower interest rate with your lender. Start by checking rates from different lenders and then call your current lender to see if they can match or beat the rate. If they can’t, don’t be afraid to shop around for a new lender. Federal student loans have fixed interest rates, so you can’t negotiate a lower rate. However, you may be able to consolidate your loans or change your repayment plan to get a lower monthly payment.

 

If you can’t negotiate, consider refinancing:

You may be able to refinance your loans at a lower interest rate. This is especially true if you have a variable-rate loan with an interest rate that has gone up. You can refinance federal and private student loans, auto loans, and mortgages. Check rates from different lenders and mpare the total cost of the loan before you decide to refinance.

Any opinions are those of Rademacher Financial, Inc and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with us at Rademacher Financial, Inc. about your individual situation.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation.