The average American is walking around with more than $6,000 worth of credit card debt hanging over their head. And it can be very difficult for a person to bring this balance back down to $0 if they have a high credit card interest rate.
If high credit card interest rates are keeping you down and making it feel like it’s going to be impossible to ever pay off your credit cards, you should do something about it. There is actually a way to get yourself access to the best credit card rates to make your credit card debt more manageable.
Want to find out how to lower your credit card interest rate on a specific credit card so that you can begin the process of paying it down to $0? Use this guide to give yourself the opportunity to get the job done.
Begin By Seeing What Your Credit Card Interest Rate Is
Do you know what your credit card interest rate even is at the moment? If you don’t, don’t worry. You’re (unfortunately) not alone!
A recent survey revealed that more than half of Americans don’t know what their credit card interest rate is. It’s a big part of the reason why so many people struggle to put a dent into their credit card debt.
But the good news is that it’s very easy to find out what your credit card interest rate is. You should be able to see what it is by sneaking a quick peek at your last credit card statement.
Depending on which credit card company you use, you might be surprised to see how high that your credit card interest rate is. It’ll help you to realize why you’re making such big credit card payments nowadays without seeing your balance change a whole lot.
Think About What You Would Like Your Credit Card Interest Rate to Be
Once you know what your credit card interest rate is right now, you can start to think about what you would like it to be. You’re obviously not going to be able to convince your credit card company to bring it all the way down to, say, 0%. But it wouldn’t be too much of a stretch for them to drop it from 27% to 20% to make it a little easier for you to pay down your credit card balance.
Whatever the case may be, you should come up with a number that you feel comfortable with in terms of your credit card interest rate. You’ll put yourself in a much stronger position when you reach out to your credit card company to try and lower your rate when you take this approach.
Call Your Credit Card Company and Ask Them to Lower Your Interest Rate
After you’ve thought long and hard about what you would ideally like your credit card interest rate to be, you should get your credit card company on the phone. You should come right out and tell them that you would like to lower your interest rate if at all possible.
You shouldn’t be shocked if they respond by saying no. They are, after all, in the business of trying to make as much money as they can. As a result, they might not want to negotiate with you at all on your credit card interest rate.
But if you play hard ball with them and give them the impression that you might not be able to continue to make payments on your credit card without a lower rate, they might be willing to budge. They might also budge if you tell them that you’ve received offers for a low-rate interest card from another company.
You might have to pull out all the stops during negotiations with your credit card company. But you should be able to get them to bring your interest rate down at least a little bit by doing it.
Consider Applying for a New Credit Card With a Lower Interest Rate
If you can’t get your credit card company to give you an inch while negotiating with them over your credit card interest rate, you should consider looking at some of the other credit cards that are available to you. You might be able to find something with a much lower rate than the one you have now.
You might also be able to take the credit card balance that you have now and transfer it over to a new card with a low or even 0% introductory interest rate. This would make it so much simpler for you to get a better grip on your credit card debt.
Get Into the Habit of Renegotiating Your Credit Card Interest Rate Every So Often
Most people think that the only time they should negotiate a better interest rate on their credit card is when it’s entirely too high. But as long as you are a customer in good standing with your credit card company, you should give it a whirl at least once every year.
The credit card industry has become very competitive over the last few decades. Because of this, many credit card companies are willing to extend perks like lower rates to their long-term customers to keep them happy. You might be able to use this to your advantage by renegotiating your credit card interest rate every now and then.
You Can Save Yourself a Lot of Money by Getting a Lower Credit Card Interest Rate
If you have a credit card with an interest rate that is sky-high right now, you should set out to do something about it. Otherwise, you’re going to end up spending a fortune paying your credit card debt down over time.
Use the tips that we’ve laid out here to get your credit card interest rate under control. It’s not as challenging as it might seem to get access to the lowest interest rates possible on credit cards.
Browse through the other personal finance articles found on our blog to get more tips on using credit cards responsibly.
