Today Fix Your Credit Consulting is going to take a look at interest rates on credit cards and what YOU can do about them.
For those that do not know, an interest rate is how much of your total debt will be added on to what you owe during every pay period (usually this means monthly) and is expressed as a percentage. For example, if you have a credit card with a 5% interest rate that means if you owe them $100 at the end of your pay period an additional 5% of what you owe (so in this case $5) will be added to the total debt. As you can easily surmise, it is much better for you to keep your interest rates as low as possible.
If you’ve ever looked at the interest rate on your credit card you might find yourself thinking they are rather higher and wishing there was a way to lower them. What most credit card companies do not want you to know is that it is possible to get your interest rate lowered.
For obvious reasons credit card companies will not advertise this, but for the majority of lenders you can call them using the customer service number on the back of your credit card (you can also find this number listed on their website) to negotiate a new interest rate while keeping the same card and the benefits that go along with it. However, you are going to want to do your homework first in order to get the best results.
Before you call your lender to try and negotiate a new rate, you should go into the conversation with some information ready. First, you need to ask yourself if you have been a good borrower? Have you been consistently paying your card without being late? Have you been paying off everything that you owe? If not, then you are going to want to wait and build up a better history with your lender before trying to negotiate to give yourself better odds at getting the outcome you want. Usually companies are more willing to lower your interest rate if you have been paying off your card for at least six months and if you have paid off your balance in full. That means being a good borrower can save you money in the long run, since a lower interest rate means you will be giving your creditor less of your own money when it comes time to pay the bills.
You should also take the time to research similar competing credit cards and what their interest rates are. If you find one with a lower interest rate, have that information available so that you can mention it to your lender when you call. After all, it is in their best interest to keep you as a customer, even if that means lowering their interest rates to stay competitive with other potential lenders.
Be aware though, that there is no guarantee that your credit card company will lower their rate, and that they might say no. But your chances of getting approved for a lower interest rate are much better as long as you are armed with the knowledge outlined above. So go forth and make the call so that you too can have the interest rate you deserve.
If you have any questions, feel free to give us a call at 877-212-2450!
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