Credit card interest is one of the reasons why many people find it hard to clear their credit card debts. It piles on your balance leading to even bigger obligations.
Here are some of the ways to incur lower credit card interest rates:
Most people are not privy to the fact that the interest rates provided by the card providers are not cast in stone. There is always the possibility of changing interest rates. In most cases, your bank doesn’t want you to know about it.
Before you get to negotiate with your card issuer, research the market for prevailing interest rates among competitors. You will establish not only the lower interest rates but also the best credit cards to build credit during your analysis. Use this information as leverage when asking your service provider for the lower rates. Given your service provider will not wish to lose you to the competition, they are likely to reduce the prices to match the market figures.
Your year of operation with the issuer is essential in showing your loyalty. Therefore ask for an interest rate reduction on the oldest cards. Polish your negotiation skills and persistence before you start the process.
2. Keep a Healthy credit score
It is no use expecting a reduction in your credit card interest rates when you have a poor credit score. The best way to keep a good credit score is by clearing your debts. The more your debts accumulate, the harder it becomes to manage. You, therefore, need a working debt clearing strategy.
Pay off the credit cards with higher interest rates first. This helps you avoid accumulating more debt while on the clearing process.
3. Transfer Balance to Lower Interest Account
Transferring your balance to a new account that charges 0% interest rates help lower your interest rates. You won’t have to pay any interest for the earlier stages of use. Even though most banks charge around 3% for the transfer, some offer the services for free. Thus, do your due diligence before you hand in the transfer request.
The success of your balance transfer requests depends on your credit score and the account you are transferring to. For example, you cannot move the balance to an account from the same service provider.
4. Keep Asking for Reviews
Whether you were successful in getting a lower credit card interest rates or not, you have to keep asking. For those who failed, this is the time to notice, improve, and qualify you for the reductions. For those who got the cut, check to see if the service providers are willing to reduce even more.
5. Look for Other Options
With the various banks offering different interest rates, keep searching the market for better rates. Do not hesitate to create a new account when you find your fit.
It is high time you reduced your financial burden by lowering your credit card interest rates. These tips are an excellent starting point.