How to Lower Your Interest Rate
When you have a lot of credit card debt, you are going to be spending a lot of money repaying what you've borrowed plus any interest that accrues. Interest rates are the way that credit card companies actually make money. The higher the interest rate you are paying, the more money that you are going to spend overall. If you want to minimize debt owed monthly on your credit cards, then you are going to need to get a good interest rate.
If you currently have a high interest rate, then you need to work on getting it lowered as fast as you can. The longer you keep a higher rate, the more money you are going to have to pay out. You need to begin negotiating now, so that you can work on getting the lowest interest rate possible. A lot of people actually don't even try to get a lower interest rate because they believe that there is no way that a credit card company will agree to make rates lower. This is not true at all, and there are things that you can do to make lower rates possible.
Being a Good Customer
If you want to lower the interest rate on your credit cards, then you need to give your provider some incentive to actually do this. First off, you need to prove that you are good customer by always paying your bills on time. The payments that you make to your credit card company are how the company makes its money, so it's important that you pay your bills on time. If you can establish a good payment history with your company, then it's more likely that they will be willing to lower your interest rate.
Another thing that you can do to prove you are a good customer is to actually pay more on your credit card bill than the minimum payment. Although you are only required to make the minimum payment, this is actually going to cost you a lot more money in the end. If you can afford to double your payment each month, then this is going to put you in a lot better position to negotiate for a lower interest rate. Try and pay as much as you can towards your bill each month.
Asking for a Lower Rate
If you want to get a lower rate on your credit card, then you are going to need to ask for it. Your credit card company is not going to just offer up a lower interest rate without you requesting for them to do so. Before you call up and ask your company for a reduced interest rate, make sure that you can make a good case for yourself. Remind your credit card company that you have been a good customer and have always paid your bills on time. This is the best way to go about getting a lower interest rate.
If you do want to know how to lower your interest rate, then you need to make sure that you have a low balance on your credit card. If you do, then you will have a much better chance of getting a lower rate from your company. If you have really high balances on your card, then it might be a difficult thing to get your interest rates lower. Before you ask for a lower rate, try to pay down your balance as much as you possibly can, and then it will be easier for you.
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State Guides to Credit Card Laws
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