How to Lower your Credit Card Interest Rates
To many consumers, finding a lower credit card interest rate is like trying to find the Holy Grail. In truth, it is not nearly as difficult as it seems. The best part is, you do not have to apply for a new credit card just to receive a lower rate. If your credit card’s rate has increased, you may be able to get the rate lowered if you know a few tricks. Of course, you still have the option of transferring balances if all else fails.
Contact Customer Service
Call customer service for your credit card. Explain to them how you have been a loyal customer and have never missed a payment. Mention that you have been considering switching to a low interest rate credit card from a competitor. In many cases, your interest rate will be lowered. The object is to not ask for too much of a decrease.
This works best if you have been a card holder for at least three years. Asking for a rate decrease too soon does not give the company any real knowledge of your payment habits. Establish a rapport with the company before you ask for a rate decrease.
Never Miss A Payment
To keep a credit card low rate, always pay your monthly payment on time. If possible, pay early. When you begin to miss payments, your rate may start to increase. This hurts your credit score, which affects not only your current credit but future credit.
If the current payment date does work well for you, contact your credit card company to discuss a new payment cycle. For instance, if you are paid at the end of the month, but the payment is due the week before pay day, money may be tight. Ask for a more convenient payment cycle to ensure you never miss a payment.
Avoid Over Limit Fees
When you start going over your card’s limit, you risk gaining a reputation of poor financial management. By not being able to effectively manage your debt, your interest rate could increase. This also prevents any rate decreases, even if you ask.
A single lapse will not hurt your credit as much. Repeated problems will prevent you from applying for new credit, result in a closed account and as much as double your previously low credit card interest rate. The consequences of going over your limit do not stop with a fee.
Reduce Your Number Of Cards
The more credit cards you have, the harder it is to manage them. While it may be appealing to have numerous cards, having too much credit often results in higher interest rates. It also prevents creditors from wanting to give you new credit. Limit your number of cards to less than five if possible.
The best way to reduce your number of cards and qualify for the lowest rate credit cards is by completely paying off existing debt on the cards you wish to cancel. You save on interest and can take advantage of lower rates on the cards you keep by contacting customer service.
Transfer Your Balance
If you cannot get your current rate lowered, consider applying for a new card with a lower credit card interest rate on balance transfers. Some cards offer a 0% APR on transfers during the first year. You will be able to pay off your debt, cancel the higher rate card and even take advantage of a new, lower rate card.
You can qualify for a lower rate on your current card by managing your credit carefully. Never be afraid to contact customer service to negotiate new rates.
Please visit our financial portal which features comprehensive and useful information about the best way to fix your credit report with information and deals for fixed rate credit cards.
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