Simple Tips to Lower Your Credit Card Interest Rates

Credit card is such a great convenience for people. While the card holders enjoy the benefit of being able to meet their immediate expenses without having to wait for the cash inflow, this privilege does not come free of cost. When it comes to paying back the credit along with the interest accrued, it becomes a grudge expense for many. The one benefit to credit card is the improved credit rating you enjoy if you can maintain the payment schedule meticulously. However, you might not relish the situation when the interest rates are exorbitantly high. Credit card interest rates are often a big factor that burns a big hole in your budget. The good news is you can lower credit card interest rates with some expert tips. Here are the three major ways you can do that.

Negotiate to lower interest rates

Often negotiating with the credit card provider can help lower the interest rates. The point is this. There is a huge competition in the banking and finance industry. To keep their business going and growing, companies need to retain their customers. They are scared to lose their customers. If you had been a loyal customer and tell then you will surrender the card for the high interest rates, it is most likely that they will come down on interest to see you stay with them. However, to do this, you must ensure your credit rating has improved, you make the payments in time, you have multiple accounts with the provider, and you have spotted some lower interest rates with some other banks.

Here is how you must negotiate with the provider. In the first place, get to know thoroughly what the bank’s competitors offer. If you have more than one card, start with the oldest one. Stay within your comfort zone and do the negotiation even over phone. Tell them that you always like to do business with them, but have come across a better option with another provider. If they match with the other provider, you can continue with them or will have no reasons than leaving them.

Manage the money properly to boost up credit scores

Every bank is highly interested in retaining those creamy layer customers who have a great credit score. If you do not have any default payments, you can significantly improve your credit score by paying off the debts faster than what is generally expected of you. Though this can be a tough job under a situation when you are cash strapped, better money management skills can come to your rescue and get you where you want to go. Usually interest can be interpreted as a bet on your paying ability. The worse your credit score, the higher the interest rates could be. When you endeavor to improve your credit scores, you will find the interest rates coming down.

Benefit from balance transfer offers

As a bank is interested in retaining its customers, every other bank is eager to steal the customer away from other banks. The introductory offers are attractive baits used by banks to allure the customers of other banks. Often offers like interest-free credit card for an introductory period that might extend for a year can come to your help. When you have an introductory offer combining balance transfer offer, it is wise to take advantage of it and transfer your credit card account to the other bank. This way, you escape the high interest charged at present besides enjoying a longer period to pay back the credit. At the same time, this arrangement can work well if you get to know how long the zero percent interest will last, if there are any balance transfer fees, what annual charges levied, if there are other charges and what is the APR following the honeymoon period. If these conditions are unfavorable to you, it does not make sense to go for the transfer. If majority aspects work in your favor, seriously consider the option.

Final Word

Credit history differs from person to person. What has caused the credit card interest soar up in your case might not be the universal one for all card holders. Hence what works best in a case might not work in others. If you find that your negotiations do not yield any fruit and you are locked in such a way you can’t move to another bank or if this option does not sound good, then the only way out to lower the interest rates is to improve your credit score. Once your credit scores improve, you will be in a far better position to negotiate with the provider in just a few months’ time.