Credit card companies in the UAE charge interest rates that can eat into your monthly budget. Monthly rates typically range from 2.5% to 3.5%, which means annual rates can hit 30% to 42%. That’s a lot of money going toward interest instead of paying down what you actually owe.
Most people don’t realize they can call their credit card companies and ask for a lower rate. Yet only a few of the cardholders ever attempt it. That’s thousands of dirhams left on the table.
Why Do Credit Card Companies Listen to Negotiation Requests?
Banks want to keep good customers. Losing a customer costs them money in the long run. If you’ve been paying your bills on time and using your card responsibly, you become valuable to them.
When you call to negotiate, the credit card company weighs two options. They can keep charging you the current rate and risk losing you to a competitor, or they can lower your rate slightly and keep your business. Often, they choose the second option.
Preparing Before You Make the Call
Check your current interest rate.
Look at your latest credit card statement. Find the monthly interest rate and calculate the annual rate by multiplying by 12. This gives you a starting point for the conversation.
Know your payment history.
Have you been paying on time for the past six months? A year? Two years? The longer your track record of timely payments, the stronger your position becomes during negotiation.
Check your credit score
A credit score above 700 makes you more attractive to lenders. Even if yours is lower, knowing where you stand helps you frame your request appropriately.
Making the Phone Call
Pick up the phone and dial the customer service number on the back of your card. Don’t use email or online forms for this. Speaking with a real person makes a bigger difference.
When someone answers, explain clearly that you want to discuss your interest rate. The first person you speak with might not have the authority to make changes. That’s normal. Ask to speak with a supervisor or someone in the retention department.
What to say during the conversation
Start by being polite and straightforward. Something like, “I’ve been a customer for three years and always pay on time. I’m looking at offers from other credit card companies with lower rates. Can we discuss reducing my current rate?”
Point out your positive history. Mention how long you’ve had the card and your consistent payments. If you have competing offers, bring those up specifically. Banks take notice when customers have other options.
The Bottom Line on Negotiating Rates
Negotiating with credit card companies takes courage, but it’s worth the effort. A reduction of just 1% on your monthly rate can save you thousands of dirhams over time.
Start with your oldest card or the one with the highest balance. Make the call this week. Be polite, be prepared, and be persistent. Even if you don’t succeed with the first credit card company, keep trying with others. Your financial future is worth a few phone calls.
