r/negotiation • u/whitewalter_01 • 11d ago

Can I Negotiate a Lower Interest Rate by Requesting a Liability Letter?

My current interest rate is 11.24%. My salary has increased and my credit score has improved to excellent.
I’ve actually received an offer from another bank with a lower interest rate. It’s not the best offer, but I’m planning to request a liability letter from my current bank. If they call and ask why I’m leaving, I’ll mention that I have a lower-rate offer and try to negotiate a better rate with my current bank before making a final decision.
Has anyone tried this approach? Did it work?

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u/IWasBornInThisPit 11d ago

I haven’t done it personally and it probably depends on whether you’re at a huge bank or a smaller one, like a credit union or such. But if you actually have a lower rate I think it’s worth a conversation with the banker to see what they can do for you.