How to Lower Credit Card Interest

You just realized you have been paying high interest rates and you do not know what the problem is? Here are some steps you can consider on how to lower credit card interest.

How much interest are you paying?

The first step you should take is look at the amount of interest you pay. This is done by collecting your latest statements of your credit cards. Listed at the top or at the end should be your Annualized Percentage Rate or APR. Alternatively, you can inquire about your APR fro, your credit card company. It is also advisable to do a search on what rates the credit company is offering new customers. By doing this you can get yourself lower rates.

Make a comparison

Making comparisons means you compare your credit card rates to those of national averages. Websites, for example, bankrate.com, cardweb.com and creditcard.com can be of help to you. From the websites, you will be able to compare the new credit card rates offered to borrowers.

What Rate should you be paying?

It is prudent to determine your credit score before calling the credit company and know where it lies. With this information, you can then be able to determine the exact rate you should be paying. It is easy to know your credit score if you do not know yet. You can click on the relevant website which have a lot of information that will assist you, depending on your country. In this case for example, you will click on the ‘credit score’ option from your account and it will be shown to you. A ‘super prime’ credit score, for instance, means you should not be charged within the regular ‘prime’ rate category. With this information, you can lower your credit card rate. Ask the company why they are charging you higher when you should be charged in a totally different category of rates.

Calling the credit company

You are now fully equipped with the necessary information and you have to make that important call. How do you go about it? Remember this is your financial situation at stake and if you do not do what you have to do, your rates will go on shooting higher and leave you in debt. Pick up the phone and ask to be put through to the relevant personnel. Explain your current credit rate and go ahead to state your credit score. Remember to ask the reason why they charge you higher rates when they offer better rates to other competitors. It may not work to your favor with the first call but do not give up. Call again and negotiate.

Credit card companies always lower rates, in fact, every single day. If you are not satisfied, however, you can ask the company about debt management plans. This can be taken as a last resort when everything else does not work. The credit company will help you restructure your debt situation, giving you a different lower rate. Make that call today and enjoy lower credit card interest.

Roger is a freelance writer that loves to cover financial topic. You can visit site here.