More than 50 percent of all U.S. households have credit card debt that they carry over from one month to the next. They are charged interest on these balances, which in effect means that they are losing money every month to the credit card company. While some accept the high interest rates they were given when they applied for their credit cards, others work to lower their rates using one of several different methods.
- Consumers should work to pay down their current debts in order to improve their scores. This is not always easy, but it can be done. Those who have significantly improved their credit score from the time they opened their credit card account may wish to look for an alternative credit card. Higher credit scores almost always equate to lower interest rates.
- Another way consumers can lower their interest rate and their debt is by switching credit card companies. Many credit card companies offer zero-interest on balance transfers for twelve months or longer, allowing consumers to transfer and then pay on their balances without incurring any further interest to pay off. Of course, these zero-interest periods are limited, but it does help those who pay down their balances without charging more on the card.
- Finally, consumers may be able to negotiate a better interest rate by calling the card issuer and simply asking for lower rates. If they can demonstrate that they have been a loyal customer who has made on-time payments, they may succeed.
If you want more credit, check out MoneyTips' list of credit card offers.