How to Lower Credit Card
Interest Rates
If you have high credit card interest rates, you’re probably desperate to get out
from under them. If so, your instincts are good. Learning how to lower credit
card interest rates can do a lot to improve your financial health.
If your credit is good, one of the best strategies you can implement is to find
a card with a 0% introductory APR and the very best credit card interest rates
after that introductory period expires. Once you’re approved for that card, you
can transfer your existing high-interest credit card balances to it. Because you
would stop paying interest as soon as the balances are transferred, the amount you
owe would only go down as you make payments — as long as you don’t use the card
for new purchases.
Needless to say, you’ll want to find the longest introductory period possible before
the credit card interest rates increase. But because the day will
inevitably arrive when you have to start paying interest again, you’ll want to make
sure the post-introductory cost reflects the best credit card interest rates available.
If you’ve been serious about reducing your debt, the balance left when that period
ends should be more manageable. And if you can find another card with the same features,
you might even want to start over again with another 0% interest card.
But what if you don’t have good credit? As you probably already know, credit card
interest rates and terms won’t be as favorable for you, and the chances of you securing
a 0% card are probably slim. In this case, your first line of defense is to contact
each of your credit card companies to ask if they can show you how to lower credit
card interest rates. You might be surprised at the response you get. In fact, a
national study in 2002 found that 56% of consumers who called their credit card
companies and asked about the best credit card interest rates available
to them were granted a lower rate.
Why are these companies so willing to negotiate lower credit card interest rates?
It’s simple; they’re more flexible than ever because competition for credit cards
has become so aggressive. It costs several hundred dollars to acquire a new customer,
so retaining good customers who might otherwise jump ship is just good business.
That means you probably don’t have to suffer with high credit card interest rates
that are putting you in the poor house. By expending just a little effort, there’s
a good chance you can
get the best credit card interest rates available.