Do you think that negotiating interest rates with banks and credit card companies is impossible? Think again! As a consumer, you carry a lot of weight in being able to determine what interest rates you pay.

Many consumers are able to get a better interest rate on a financial package before they sign on the dotted line. Why would a lender negotiate with you? To beat out the competition! They know that if they don’t offer you a mortgage loan, there are plenty other businesses that will. However, you may not be able to negotiate with a credit card company. Most of their packages are fixed, so you cannot get a lower interest rate.

A good credit score is a great tool for you to use in negotiating these lower interest rates. You have an excellent credit history and are a “good risk” for the lenders. You can click here to get a free copy of your credit report along with your credit score.

Once you do sign the mortgage papers, you chances of negotiating a lower interest rate is not as good. That is because the effect it has on the return in their investment would be altered. But, while negotiating with mortgage interest rates is good before signing and bad afterwards, credit cards and small loans are the opposite. If you find yourself with a loan or credit card with high interest, you can try to get lower interest rates.

If you have a good credit history, negotiating a better interest rate will be easier. The institutions will be able to see that you are responsible with your finances and are more likely to pay them back the money you borrow from them.

Institutions don’t like to take chances with risky customers because it ends up costing them money. They have to take the customer to court to have them repay their debt to them. Usually though, a deal can be worked out between the customer and institution so the money is repaid over a period of time.

This is part of the reason it is easy to negotiate a better interest rate with your credit card lender. They also know that it may be easy for you to transfer their balance to another card with another lender that is a lower interest rate. That means they lose you as a customer if they don’t lower your rates – something they don’t want to happen!

Here are a few tips for negotiating lower interest rates.

It is best to have any deals that you do with the financial institutions in writing. That way, if something happens and you have to go to court, you have something tangible to show the court.

Try to avoid being confrontational when negotiating. If you appear too challenging, they will think you do not want to resolve the issue. So remain fair when negotiating. If the interest rate you are demanding is too outrageous, you may end up being ignored. And never threaten the institution. Saying you are not going to pay or claim bankruptcy can be used against you in court and will show that you aren’t willing to fulfill your financial responsibilities.

You want to be realistic, but still try to turn the tables in your favor. Try to negotiate a fixed rate with payment periods that are acceptable for you.

Once you have requested a lower rate that your lender accepts, be sure to keep up with your new commitments. Once you fail to make the new payments, it will be detrimental to you if the lender takes you to court. So be realistic in your demands, be polite, and follow through with your commitments.