reduce credit card interest rate

Reducing your credit card interest can greatly reduce your debt burden, Different credit cards charge different interest rates. The credit card business has become quite competitive, there are various ways to reduce your credit card interest rate.

Credit Card Interest Rate Basics

Avoid getting lured into applying for a credit card that hypes an extremely low interest rate. any card that offers such a low interest rate will honor that rate only for a short period of time. If you hunt around for a low-interest-rate credit card, be sure to check out all the terms and conditions. Start by reviewing the uniform rates and terms disclosure, which details the myriad fees and conditions. Also, be sure that you understand how the future interest rate is determined on cards that charge variable interest rates.

Reducing your credit card interest rate Strategy

Apply for a lower-rate credit card. If you’re earning a decent income, you’re not too burdened with debt, and you have a clean credit record, qualifying for lower-rate cards is relatively painless. Some persistence (and cleanup work) may be required if you have income and debt problems or nicks in your credit report. After you’re approved for a new, lower-interest-rate card, you can simply transfer your outstanding balance from your higher-rate card.

Negotiate with your credit card company. Call the bank(s) that issued your current high-interest-rate credit card(s) and say that you want to cancel your card(s) because you found a competitor that offers no annual fee and a lower interest rate. Your bank may choose to match the terms of the “competitor” rather than lose you as a customer.