How To Lower Credit Card Interest Rate In 4 Simple Ways

how to lower credit card interest

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“There’s no easy way out,

There’s no shortcut home.

There’s no easy way out,

Giving in can’t be wrong.”

Every American has listened to this legendary song sung by Robert Tepper. The essence of the song is about breaking free from tyranny and never giving up. The hustle of overpowering credit card debt shares the same ethos.

Recent reports say that about 38% of American households owe severe credit card debt. If you dwell in the same category, then you must be finding ways to curb your monthly credit card bill.

The most basic and first aid measure would be to know how to lower credit card interest rate.

Negotiating a lower credit card interest is easier than you would expect. The simplest way to achieve it is to call the customer care executive and ask him/her to connect to the concerned person.

But, first thing first, you should keep track of your credit card statements before knowing how to lower your credit card interest.

1. Check your Credit Card Statements

Amass your credit card statements together. It’s crucial to browse through your credit history and other important details before calling up your credit card company. How would you negotiate without knowing your current interest rate?

You will find the customer service number on the statement somewhere. Call the number and ask the customer care executive to connect you to a person who can negotiate your rate.

Now, negotiating a lower interest rate on your credit card is by no means a cakewalk. Why would the company grant you a lower interest rate? It’s bread n butter for them and you don’t live in la-la land either.

Well, it’s not that you have no points to bank upon. A credit card company would consider following points before lowering your credit card interest:-

  • Credit score
  • The amount of time you’ve owned the card
  • What your credit limit is
  • The amount you owe on the card compared to the credit limit
  • The amounts you owe on all your cards compared to their credit limits
  • If you’ve made any late payments in the past

Now, you must be wondering why the credit card providers weigh your prospects of repaying the debt against these parameters. This is why:-

Credit Score

Because a credit score is an indicator of the risk involved.

Amount of time you have owned the card

Lenders often go the extra mile for a loyal customer to build trust

Credit limit

A higher credit limit is often accompanied by a high or moderate interest rate. If you max out your credit card and then default, the card provider will be at the receiving end.

Credit utilization rate

An ideal credit utilization rate is 35%. If you are hovering along that rate then credit card companies could be interested in settling for a lower interest rate.

Payment history

They say that ‘coming events cast their shadows long before’ and the credit card providers put their faith in this phrase.

If these indicators/parameters are in your favor. Then you won’t have a hard time negotiating. In case you don’t know what your credit score is, then go to credit sesame right away.

Credit Sesame gives you credit score for free and also monitors your credit. It also gives you a credit analysis report highlighting the grey areas which need immediate attention from you.

Moreover, it asks you to set credit goals and guides you to it. Basically, Credit Sesame is your credit concierge.

Visit Credit Sesame here!

2. Countering Late Payments

As if the hurly-burly of this world was not enough, the ghost of late payments keeps springing on us every now and then. Not only this, but we have to face serious repercussions for missing out our monthly credit card payments.

The balance is transferred to the next month and more often than not the interest rate shoots up in case of default. To counter this, Trim and Charlie are two financial management apps which can take you through the mess.

Trim 

If Abbey would have been living today, he would have called Trim as your financial wingman. There is nothing you can think of that Trim doesn’t help you with.

From monitoring your expenses to giving you payment reminders to negotiating prices on your behalf. Trim ensures that you save every single buck wherever possible.

Charlie 

Want to know how sassy A.I can be? Look no further than Charlie. Charlie is your money saving penguin prodigy with an easy interface. It works as if you are chatting with a real penguin over FB messenger.

Charlie works on the principle of “Your Wish, My Command”. You ask anything to Charlie regarding your expenses and it will answer you.

3. Transferring your Balance to get a Lower Rate

Sometimes credit card providers can be fussy and you may find no answer to the question – how to lower credit card interest rate. It is hard to fathom why you have not been a good enough customer and you know it down the line.

This is the time to count on balance transfer cards. This would allow you to shift a portion of your credit card debt to a card with a lower interest rate. If not, at least the introductory interest rate will be low.

You may want to dedicate some time to browse through the options for best transfer deals. It’s important to take note of factors such as Balance transfer fees and Annual fees.

You would not want to overlook the fine print as the offer you are choosing might be predatory lending.

A couple of tips:

  • You could apply for a card right after taking a house loan or a car loan. There is some lag between the time you take a loan and the time it shows up on your credit. This is your play, make the most of it.
  • Make the best use of low introductory rates. When you transfer your balance to a new card with low introductory rates, the rates would vanish soon. Ensure that you make the payments before the rate expires.

4. Consider taking a Debt Consolidation Loan

Sometimes your debt problems are too huge (why would you negotiate a lower interest rate had it not been for debt) and you don’t know which way to go.

This is where debt consolidation comes to your rescue. Debt consolidation loans pile up all your debt into just one financial obligation, to help you solve your mess and avoid the collateral damage.

You may at times need services like debt settlement or debt negotiation to solve your debt woes. Whatever the complexion of your finances be, below are the three most reputed debt relief service providers which provide all debt relief (debt consolidations included) services under the sun:-

National Debt Relief

One of the pioneers in debt relief sphere, National Debt Relief’s program could turn the tide your way. It doesn’t charge any fees upfront fees and they will map out the problem areas in your finances for free. The years of experience and expertise which its brings to the equation is just remarkable. No wonder, they have been solving debt nightmares for quite a long time now.

Debt Consolidation Care

When too many types of debts are lurking over your head, debt consolidation is the safest route possible. You only have one payment to make at the end of every month and that too at a -lowered interest rate. If things come to this,  put your trust in debt consolidation care.

Cura Debt

If you have too many credit card debt and unsecured loans, Cura Debt is your mercenary. Cura debt offers free debt relief consultation to people who are anxious to break out of debt. So, visiting its website and taking free of cost professional advice won’t cost you a dime.

Now you know how to lower credit card interest rate or do you. You see that there can’t be a talisman for lowering your credit card interest rate as everyone’s finances have got a different complexion.

You may have to call any or all of above mentioned firms to figure out what all the options you have at your disposal.

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