Reducing your credit card interest rate is a great idea as it will save you a lot of money in the long run. It is no wonder that a lot of people are looking for ways to reduce their interest rate. But remember that you can reduce your credit card interest rate without putting your credit score at a disadvantage. Any impact to your credit score means you will limit your chances of borrowing money. Let’s see how you can plan ahead to get a low interest rate from the start to reduce your current credit card interest rate.
Pay your credit cards in the order of their interest rate starting with the highest interest rate
Most people when they have more than one credit card pay them without much thought about which card to pay first. This leads to accumulation of interest rate with the credit cards with more interest rate wreaking havoc on their finances. So, if you want to reduce interest rate, start by paying your credit card with the highest interest rate first especially if it’s going to take you a long time to pay your credit card debt. So, check your credit cards interest rate and pay your debt accordingly. With little planning, you will save yourself a lot of money in the long run.
Get credit cards with low interest rates
Credit cards are necessary, and no one can live without them, but you should remember to let credit cards work for you and not against you. When you get credit cards, always look for credit cards with the lowest interest rates. Don’t just sign up for a credit card without reading the terms and conditions of use. We know that reading terms and conditions are lousy, but they are going to save you a lot of trouble. It’s important to know when you’re supposed to pay your debt, the exact interest rate, and how much are you going to pay for long-term payments. Before falling in credit card debt, ask those questions in advance and go for credit cards with the lowest interest rates.
Apply for a personal loan
If you’re having trouble paying your current credit card debt, a good way to pay your credit card fast and reduce your interest rate is to get a personal loan so you can pay your credit card fast. This way you improve your credit card score as you’ll be free of credit card debt, and you’ll get to pay the loan at a much lower interest rate. When you apply for a personal loan, make sure you understand its terms. There are several things you must consider before applying for a personal loan. Make sure you understand the fees and the interest rates of your personal loan. Plan ahead how you are going to pay the personal loan and in how many years. In trying to get rid of credit card debt, getting a personal loan can be a great idea if you know how to go about it carefully.
Ask the bank to lower your interest rates
Sometimes, the easiest and most straightforward way to lower your credit card interest rates is to simply ask the bank. Yes, it’s possible for you to do that. There is no 100% guarantee that the bank will lower your interest rates when you ask, but you won’t lose anything by asking. Of course, you can make that request to the bank you’ve dealt with the longest. Your chances are higher when the bank knows you’re a profitable customer. Your chances are also great if you always repay your debts without any delay. You could also compare your bank’s interest rate with other creditors to convince your bank to lower interest rates for you.
Consider a debt management plan
It would be such a great idea to ask for help if you can’t manage your finances. Considering a debt management plan may be a great option for you if you have more than one credit card to pay and all of them have high interest rates. The first thing is to get a counselor to check your finances and advise you on the best way to act. Debt management plans work well with credit card debt because a debt management plan (DMB) covers unsecured debt only, in other words, the debts that are not covered by assets. A debt management plan is the best way to consolidate all your credit card debt into one payment with low interest.
For more details, give us a call at (800) 730-900 to get your free credit card counseling and to start a debt management plan tailored to your needs.
Credit card interest rates are not set in stone. With little planning and taking the right action, you can reduce your interest rates, pay your credit cards faster, and live debt free.