When you first get a credit card, you may have landed yourself with a very high-interest rate. A high-interest rate is a great way to find yourself carrying a balance that just keeps growing. Lowering your interest rate can help you break the cycle, but getting a lower credit card interest rate from the credit card issuer can be a challenger. Now that you know better you want to find a way to lower that interest rate and save money for your family.
How to Lower Your Credit Card Interest Rate:
1. Shop Around.
Your goal should be to keep your current card because of the older the account on record the better the effect on your credit report. That said take some time to shop around and see what other cards are offering people with a similar credit score. Armed with this knowledge you have something to negotiate with.
2. Call Customer Service.
Dive right in. Once you know what the competition is charging, and your current credit score, spend some time on the phone with customer service. (Call the number on the back of your card.)
Be clear on what you want. Since getting your credit card odds are you have built up your credit and proven that you will pay your credit card bill. This will give you the power to talk them into a rate change. Don’t give up with the first no. Be polite and ask to speak to the next person up the chain of command until you get a result that you are satisfied with.
4. Balance Transfer.
If you fail at getting your current card to lower your interest rate you still have options. Transferring your balance to a new card with better terms is a great way to lower your interest rate. You must be careful to shop around when looking for a balance transfer card. Pay attention to fees and int new interest rate. If the rate is variable you need to be sure to pay off the balance before the introductory period ends.
Once you pay off that high-interest rate if you could not get your card to lower your rate you have a very important choice to make. Keeping the card with a low to no balance will benefit your credit score. However, if you know you will be tempted to use the card again restarting the debt cycle you may be better off closing the account. Only you know which option will be better for you in and your situation and you should take time to think this one through.