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6 Tips to Lower Your Credit Card Interest

Lower Your Credit Card Interest

Every day we hear about people surrounded by financial crises. The use of credit cards is increasing and so are the debt rates. People are unable to stick to their plans on how to use the credit cards. Eventually, they pile up huge debts. Let’s have a look at how to lower your credit card interest:

1. Find out about your APR

APR is annual percentage rate listed in your statement. You can find it out from there or your credit card company.

2. Negotiate for lower interest rate

Before negotiating for a lower rate, you should know the rates of credit cards. To find out, you can search online with your card’s name. You will see the rate offered to new customers of each card. Compare it to your credit card to know the difference.

3. Comparison of you Rate and National Averages.

To lower your credit card interest, compare these rates by finding out information at websites such as credit.com, lowcards.com, cardweb.com, bankrate.com etc.

4. What rate does your credit score deserve?

Don’t just call your issuer to lower your rates. You should know that in what category you fall in according to your credit score.

For a ’super prime’ score, you don’t deserve a regular ‘prime’ interest rate. If you are being charged such a rate, make an effort to lower your credit card interest. High rates make it difficult for you to reduce debt.

5. Contact the Credit Card Company

When you have completed the research and you are well aware of the different rates and knowledge about your debt, be confident and ask for a better offer or deal. Don’t be demotivated by hearing “I’m sorry but I cannot help you”. Ask to speak to their supervisor or anyone in charge. Convince them in any way you can.

When they are ready to talk, tell them about your knowledge of lower interest rates and you deserve one as well. Tell them about their competitor’s deals and if they don’t want to close you as a client, they will agree on negotiating better terms.
To lower your credit card interest, effort is required. They will eventually listen to you. Keep calling them until they listen. At times, people take advantage from new deals. For instance, if you saw a deal with zero interest for a few months, you can issue a new card and transfer your previous balance to that card. Whatever you do, make sure you never delay your payments again because reducing debt is tough.

6. Inquire about debt management strategies

Sometimes bad luck never let you go with your plans. If you are unable to do anything else, the last option you should consider to lower your credit card interest is to go for debt management plans. Your issuer is aware of the fact that plenty of their customers face financial problems. They can work on restructuring your debt.

Debt management plans offer to lower the interest rates, lower minimum payments, eliminating penalties, expands payment periods etc. remember one thing; debt management plans do not reduce the amount of debt you owe. They just help you by providing some relaxation so that you are practically able to pay back your debt.

Two common types of plans are Debt Management Plans and Forbearance Plans. There are instances when people have been successful in lowering their interest rates from 29% to 0% through one of such plans.

A problem with such a solution is that it affects your credit score. When you are in so much debt that you seek for such options, your issuer reports this situation to credit bureaus. As a result, you credit score is damaged and lowered. To be sure about his, you should read, in detail, the fine print carefully before signing the contract. However, if you in pretty bad crises, damaging the credit score is your first concern if you can actually reduce your debt. If you want to lower your credit card interest, you have to compromise with something.

Well, it’s pretty obvious that the credit card company would not lower your credit card interest unless you ask them to. They make money through high interest rates so if you are in debt, you will have to convince them any way you can. When you call your credit card company, stay confident and gather all relevant information ahead of time because you need their help. For best results, be organized and prepared if you are serious about lowering your credit card interest!