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How to Reduce Credit Card Interest Rates

January 23, 2012

How To Reduce Credit Card Interest Rates

Looking for information on how to reduce credit card interest rates? If so you are in the right spot as we have a host of different methods that can drop your interest rates on your credit cards in minutes, which will allow more of your money to go towards paying off your debt instead of just going towards paying the interest!

credit card interest rates

How to Reduce Credit Card Interest Rates Starting Today

Balance Transfer – You can also drastically reduce credit card interest rates by transferring your balance to a credit card that has a lower interest rate than that of what you are paying on your current credit card. In order to be able to utilize this method, it should be know that one must have a good credit score. With this method, there are a few things you should know, the first being that these offers are not for good, the low or no interest rate time period only lasts a certain amount of time, which is where you will want to lay as much money one the balance as possible. The other main aspect of this interest rate lowering method is that you will both want to continuing paying your payments on your old credit card until the balance has gone through completely, which can take a few weeks, as well as cancel the old credit card as soon as possible so you are not tempted to use the card anymore. This method can be very powerful as there is so many credit card companies trying to compete for your business that they pretty much have to offer 0% introductory rates to get any business.

Self Negotiation - A lot of times if you actually contact your credit card provider and explain to them your current situation, they may negotiate the terms and drop your interest rate. How to reduce credit card interest rates with this method is done by contacting the credit card company that you want to pay off first, and presenting them with information on how much you can afford to pay, which means you should create a budget of your monthly spendings which will show you how much money you can allocate each month to pay that creditor. This is also a good time to negotiate the entire debt total, which can be done if you can make one or a couple large payments which will allow you to knock out the entire debt, and at a total that is usually about half of what you originally owed.

Credit Card Consolidation – Credit card consolidation can be a great tool to use when searching for ways on how to reduce your credit card interest rates. The thing is you will either need to have a good credit score or find a cosigner that does as credit score pretty much dictates interest rates when it comes to consolidation. When it comes to the benefits, this is where credit card consolidation differs from transferring your balances as consolidation benefits last for the entirety of the repayment program, instead of only lasting for only 6 to 12 months. This will also allow you to only have to pay one payment, as all your debt is grouped into one debt which you only pay one payment to the consolidation company. With this credit card interest rate rate reduction method, you can also potentially enjoy benefits like having your old late fees wiped away as well as what is called “account re-aging” which is basically taking a delinquent account and putting it back to a current account which will both help you start building up a better credit score as well as can get rid of certain fees that happened before the account was re-aged.

Good Credit Score – If you happen to have a good credit score than immediately call your creditor and request for them to reduce your credit card interest rates, which they will most likely do for you as they know if they don’t you can just go to another creditor and get a better interest rate as good credit means better interest rates, anywhere.

How To Reduce Credit Card Interest Rates In The Future

A great thing to know for the next time you obtain a new credit card is that credit card companies have 3 tiers of interest rates, with the highest being for those who are new customers, a substantial amout lower for those who have good credit as well as the best interest rates coming to those who have maintained a good paying relationship with the credit card company. So basically paying your bills on time is how to reduce credit card interest rates, which will mean that more money will go towards paying your debt instead of most of it just going to paying off the interest.

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