3 Ways To Lower Credit Card Interest

Getting the best credit card interest rate may be as easy as following these tips

Shaun Plum
MoneyTips Contributor

Borrowing Credit Cards

3 Ways To Lower Credit Card Interest
May 6, 2016

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.

1. 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.

2. 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.

3. 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.

Photo ŠiStockphoto.com/itsskin

  Conversation   |   8 Comments

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irene | 05.06.16 @ 17:01
Great ideas and I will be looking into this because one of our cards has such a high rate I never use it
Steffanie | 05.06.16 @ 17:01
We have changed credit cards several times to get the best interest rate. Good tips.
Carla | 05.06.16 @ 17:02
It will work with most companies when you ask for a lower rate. I have used this method a couple of times.
Erin | 05.06.16 @ 17:02
We have switched to different credit cards before to get a lower rate. I think the big thing, though, is to make sure you don't put more on the card than you can pay off every month. Then you don't have to worry about interest at all. I know it's not always possible, but it's something to try for.
Jane | 05.06.16 @ 17:04
I've been able to get a lower interest rate on two of my cards thanks to this article. Great tips and insights.
Kbrawdy | 05.06.16 @ 17:10
This is really awesome! I have credit cards but I always make sure to pay them on time.
Beverly | 05.06.16 @ 17:18
I knew about the first two tips, good to know about the third. Another is they can call and negotiate a new balance owed to pay off completely. Saw that on the show Life or Debt.
Bobbie | 05.06.16 @ 17:20
Calling works, went from standard rate to 0% for 18 months. Paid that darn card off in 17 months!
$commenter.renderDisplayableName() | 05.13.21 @ 03:42