Credit card debt can burden a lot of families across the country as interest rates can bury consumers under accumulating debt. At the current time of writing, the average interest rate in the United States is around 16%. Proper credit card management can help alleviate this accruing mass of debt, but life isn’t that easy and simple.

That’s why no matter how tempting they might be, it’s important to be wary of services and companies that claim to reduce credit card interest rates. These organizations may call themselves a debt relief service, but beware as these companies are nothing more than scams to take unsuspecting victims on a ride. The thing is, anything they claim they can do, you can also do yourself as well.

How to Lower Interest Rates

Most consumers begin with set interest rates when they first sign up for a credit card, but different creditors will change these terms based on usage and payments made by the customer.

First, interest rates are determined by the credit history of the consumer when they first sign for the card, so having a good credit score will indicate financial stability. Credit card companies will look at this and offer a lower interest rate.

Second, depending on the creditor, the interest rate may vary depending on the card usage. For example, some credit cards will have a higher interest rate for a direct cash withdrawal (usually 50% to 100% more). Other times, the creditor may lower the interest rate if the consumer shows responsibility like paying on time or being a long-time customer. This depends on the creditor, so check the fine print when signing up. Third, the best way to lower interest rates on your current line of credit is to call customer service. The number will be listed on the back of your credit card, and if you have a good history with the card, the creditor may lower interest rates.

Credit Card Interest Reduction Scams

Some companies or organizations may offer a service to lower the interest rate on your credit cards; however, beware as these are scams. They will claim or say anything to make sure you give them money. There are several things to look out for when you come across one of these debt relief scams.

The scammer may say that they are part of the creditor, furnisher, or company with your credit card and can lower your interest rate through that method. Saying they have an inside connection may sound convincing, but there is no such special relationship between these companies and banks. If anything, you will have a closer relationship with your bank or credit union compared to these kinds of companies.

Other times, the scammer will explain that they offer a guaranteed service or money back if you’re not satisfied with your service. Again, this is nothing but fluff. When it comes to the credit industry, it’s ILLEGAL to claim anything is a guarantee. Legitimate credit repair companies are also obligated to say this when working with their customers. Beware of any guarantees made by people working in the credit industry. If you have fallen victim to one of these scams, there are several steps you can take to try to get your money back. The FTC has several options if you have sent money or personal information to a scammer. The best way to avoid these scams is awareness and a degree of skepticism.

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