Lower Your High Interest Rate

Interest rates are rising– here’s how to lower your APR…

According to Tanya Azarchs, a bank-rating analyst for Standard and Poors, a combination of higher interest rates and higher minimum payments are expected to put a financial squeeze on more and more consumers this year– which will in turn put pressure on credit card issuers. With a landscape full of potential pitfalls, banks will be competing for the best consumers. If you have a credit score of 720 or above, you should never settle paying an APR higher than 10%. Lenders will be anxious to negotiate to keep you as a customer. The truth is– there is never a truly ‘fixed rate’ in credit card industry. That’s why you should always shop around and make sure you’re getting the best credit card deal.

 Here’s a couple suggestions if you think your rate is too high or if it’s been increased:

1. Call your bank of financial institution and ask them to lower your rate. This will be easier if you have a good reason (ie: long good-standing account, improved credit score, higher income, etc.)
2. If you’re denied during your initial call– make sure you ask to speak to a manager. Explain your situation to them in detail and provide all the reasons why you think your APR should be lowered.
3. If you’re still not able to get your rate dropped, shop around for other low interest rate credit cards. If you find a better offer (and get approved), you could use this as leverage against your current financial institution. Call again and let them know you’re ready to switch if they can’t meet (or beat) the terms of the new offer. You can always accept the other credit card if they won’t budge.

No matter what credit situation you’re in, always shop around and make sure you’re getting the best rate possible. It can make a big difference in how much money you’re paying in interest and save you thousands of dollars over time. See our article on Saving Money with 0% APR / Low Interest Credit Cards.

* Or, see our complete list of 0% APR and low interest credit cards >>>