High rates prevent consumers from ever paying off their debt.
More often than ever now, companies are trying to promote credit cards with higher interest rates to their existing customers.
What is the secret to lower credit card interest rates? The first key to obtaining lower credit card interest rate is to maintain good credit.
This means making monthly payments on time, and trying to pay a little more than just the minimum payment.
Next, you may want to close credit cards you are not using.
Besides, banks look down on too many open credit card accounts, even if they are not in use.
Their reasoning is that if you have let's say, six cards with a $4,000 limit on each one, you are a high risk to suddenly charge all of your available credit.
Not a good risk for them if they extend another card to you, not to mention the temptation for you to charge more than what your budget allows.
Also, paying off your card is not enough.
You'll have to actually write to the credit card company or bank and tell them that you want to completely close the account.
Make sure to ask that they confirm the account has been closed, in writing.
How does one begin to pay off credit cards, should you begin with the highest balance? No.
It is better to target the cards with smaller balances first, as these are easier to get rid of and it will give you confidence as you watch your progress.
Then move up to larger balances because the smaller payments you were making on the other cards will be able to be applied to the cards with greater balances.
Now that you are confident you have maintained your credit and revolving balances in a responsible manner, should you just wait for an offer to come in the mail? No, just ask! Call your bank or credit card company and ask them if you qualify for a lower rate.
You may want to go to the internet and apply for a card with a low rate that you see advertised.
Then you will be able to tell your existing bank that another company has offered you a lower rate and you would like them to match that.
Lower Your Credit Card Interest Rates Another way to obtain better rates is to be open to the idea of transferring existing balances.
Even if a new card you apply for is only offering that special rate for balance transfers, it will save you a lot of money in interest.
Be sure to read the fine print since those offers usually expire after a certain amount of months which means the rate will go back up.
If you keep your eyes open you will find other offers from banks and you can move the balance to a low rate or zero percent card yet again! However, try to persuade your existing bank to keep your business, as the length of time you will have the lower rate will be much longer.
Remember, as the consumer you have the advantage.
If you want a lower credit card interest rate, just ask!
More often than ever now, companies are trying to promote credit cards with higher interest rates to their existing customers.
What is the secret to lower credit card interest rates? The first key to obtaining lower credit card interest rate is to maintain good credit.
This means making monthly payments on time, and trying to pay a little more than just the minimum payment.
Next, you may want to close credit cards you are not using.
Besides, banks look down on too many open credit card accounts, even if they are not in use.
Their reasoning is that if you have let's say, six cards with a $4,000 limit on each one, you are a high risk to suddenly charge all of your available credit.
Not a good risk for them if they extend another card to you, not to mention the temptation for you to charge more than what your budget allows.
Also, paying off your card is not enough.
You'll have to actually write to the credit card company or bank and tell them that you want to completely close the account.
Make sure to ask that they confirm the account has been closed, in writing.
How does one begin to pay off credit cards, should you begin with the highest balance? No.
It is better to target the cards with smaller balances first, as these are easier to get rid of and it will give you confidence as you watch your progress.
Then move up to larger balances because the smaller payments you were making on the other cards will be able to be applied to the cards with greater balances.
Now that you are confident you have maintained your credit and revolving balances in a responsible manner, should you just wait for an offer to come in the mail? No, just ask! Call your bank or credit card company and ask them if you qualify for a lower rate.
You may want to go to the internet and apply for a card with a low rate that you see advertised.
Then you will be able to tell your existing bank that another company has offered you a lower rate and you would like them to match that.
Lower Your Credit Card Interest Rates Another way to obtain better rates is to be open to the idea of transferring existing balances.
Even if a new card you apply for is only offering that special rate for balance transfers, it will save you a lot of money in interest.
Be sure to read the fine print since those offers usually expire after a certain amount of months which means the rate will go back up.
If you keep your eyes open you will find other offers from banks and you can move the balance to a low rate or zero percent card yet again! However, try to persuade your existing bank to keep your business, as the length of time you will have the lower rate will be much longer.
Remember, as the consumer you have the advantage.
If you want a lower credit card interest rate, just ask!