For example, if you recently suffered a serious injury, you would need a note from your healthcare provider describing the nature of your condition and how it has affected your income. If you recently lost your job or had your hours cut through no fault of your own, a letter from your employer (or former employer) would be sufficient.

Your budget should also demonstrate that you’ll be able to resume regular payments within a reasonable period of time – ideally, 4 to 6 months or less. If it isn’t possible for you to resume regular payments in the short-run, provide additional documentation to show that your condition is permanent and there is nothing that can be done about it. For example, if you have a permanent disability that limits your ability to work, the credit card company may be willing to reduce your rate permanently rather than on a temporary basis.

Find the address and department where you need to send your letter on your credit card company’s website. It may also be on your most recent credit card statement. Include the type of card you have on the subject line, along with your account number. For example: “Sunshine Visa Platinum Acct. #1234567890102. "

For example: “I’m writing because I was recently in a car accident. As a result, I was in the hospital for several weeks. I am currently at home, but still in recovery. My doctor believes I will be able to return to work within 2 months (see enclosed letter). In the meantime, I believe I could continue to make payments if my interest rate were reduced. "

For example: “I have worked with my family to create a new budget that reduces expenses as much as possible to accommodate for the loss of my income. However, even on this restricted budget we still don’t have enough to make ends meet. I would be able to make payments, and avoid late fees, if my interest rate were lowered. "

For example: “I believe reducing my interest rate from 18 percent to 9 percent for 6 months would allow me to continue to make the minimum payment on my credit card. After 6 months, I should be financially stable enough to return to the regular terms of my credit card agreement. "

Your credit card company may contact you and ask for additional documentation before granting any relief.

If you doubt a short-term hardship relief program will actually help you, talk to a credit counselor about more permanent solutions. Simply kicking the can down the road rather than addressing the problem immediately may result in larger and more serious problems.

With certified mail, you’ll get a card in the mail when the credit card company has received your letter. It may be as long as 2 weeks before you hear back.

If you get the card back in the mail and you still haven’t heard from your credit card company after 2 weeks, call the customer service number on the back of the card. When you talk to a representative, tell them that you sent a letter requesting hardship relief that was received. Let them know you haven’t gotten a response, and ask them to direct you to someone who can help you address the matter.

This benefit is provided to new service members as well as activated reservists. In some situations, it may apply to other service members. Speak to someone in the admin department on your base if you are unsure whether the SCRA applies to you. The ceiling also covers any service charges or other fees.

Clear copies of your activation orders will show the credit card company exactly when you are on active duty. Earnings statements that indicate a decreased income while you are on active duty, or delayed receipt of income, will prove that you are unable to make payments as agreed while on active duty.

Most military bases have templates you can use to draft your letter. Go to the website for your base or for your military division, or talk to someone in the admin department. [14] X Research source

Proofread your letter carefully, even if you used a form, to make sure all the information is complete before sending it out. Print it out and sign it in blue or black ink, then make a copy for your records and send the original to the credit card company.

If you have dependents, or any other situation that affects your ability to pay, be sure to mention that as well.

Generally, you’ll be more likely to get the credit card company to reduce your interest rate if you have a good-to-excellent credit score. A rate reduction is especially likely if your credit score has increased significantly since you opened the card. For example, if you opened the credit account 6 years ago when you had poor credit, the company likely gave you the highest rate legally allowed. If you’ve raised your score 200 points in that time, you’re a good candidate for a rate reduction. You no longer present the risk to the credit card company that you did when you opened the account.

It also helps if you’ve paid off your balance in full every month. If you carry a balance, it should ideally be less than 30 percent of your available credit. If you do have 1 or 2 late payments, you may still be able to get an interest rate reduction, provided they were isolated instances months or even years in the past.

If you get pre-approved offers in the mail, you can use those as a guide to the alternatives available to you. If you’ve screened out of pre-approved offers, you can still get pre-approved rates online from many major credit card companies without damaging your credit. Pre-approved offers typically do a “soft” rather than “hard” pull on your credit report, so they don’t impact your score.

For example, suppose your credit card company set your rate at prime + 10. 9%. When you opened your account, the prime rate was 9%, so your interest rate was set at 19. 9%. However, if the current prime rate is 5%, your rate should be 15. 9%. Contrary to popular belief, prime rates aren’t “set” by the Federal Reserve. Rather, they are reported by the Federal Reserve as the prime rate posted by the majority of the largest 25 US banks. [21] X Research source You can check the most recent prime rate on the Federal Reserve’s website at https://www. federalreserve. gov/releases/h15/.

Write yourself notes before you call outlining the reasons you believe your interest rate should be lowered. Highlight your positive payment history, strong credit score, and length of time with the company. Ask the customer service agent if your interest rate is fixed to prime. If they say it is, ask when it was last adjusted. Have the current prime rate ready.

Put the type of card or account you have, and your account number, in the subject line of the letter. For example: “Moonlight Bank & Trust Rewards MasterCard, Acct.

78987654321.

"

For example: “I’m writing because I believe the interest rate on my account should be reduced from 19. 9% to 15. 9%. My credit card agreement states that my interest rate is calculated based on the current prime rate plus 10. 9%. However, the current prime rate is 5%. " You can also open with details about your relationship with the company. For example: “I have been a cardholder for 6 years, and have never had a late payment. During that time, my credit score has increased by 156 points. Because my interest rate was based on a lower credit score, I believe I am entitled to a rate reduction from 22% to 18. 5%. " If you have offers from other credit card companies, you can mention those in closing. For example: “While I’ve had a wonderful experience with Moonlight Bank and would prefer to remain as a customer, Sunshine Savings & Loan has offered me a card with a higher limit and a permanent rate of 16. 5%. Unless you are willing to work with me on my interest rate, I may have to consider moving on. "

Make a copy of your letter for your records before you mail it. Keep the letter along with any other correspondence or statements from that credit card company.

When you talk to a representative, let them know that you sent a letter that you know was received, but you’ve not yet received any response. From there, the representative may ask you what the letter concerned. They may be able to help you, or you may need to speak to their supervisor. If you aren’t able to get the rate that you want, decide whether you want to wait and try again in a few months. If you have an offer from another credit card company, you may want to move to them. However, keep in mind that closing an account can negatively affect your credit score – especially if that account has been open and in good standing for several years.