How To Lower Your Credit Card Rate

When it comes to handling a credit card, a tragic number of people are unaware of the power they have to control their interest rates. They often believe that they simply have to accept what their credit card companies provide them. This is simply not true! As a consumer, you have multiple options to take to reduce credit card interest rates. You just have to believe in your right to protect your money and your financial wellbeing.

Often times, it's incredibly easy to obtain a lower interest rate. Studies have shown that at least half of the people who simply call their card providers get lower interest rates instantly just by asking for them. These rate reductions came in anywhere from 7 to 10 percentage lower than what they were previously paying.

That's not to say that the exact same will apply to you just on a whim. You have several factors to consider when applying for a lower interest rate, all of which will determine your chances for success when you make that telephone call. Credit card companies are interested in their success as a business, so you want to determine if you're in a position to provide the security they need to reduce your monthly payments.

The first thing any credit card company will look at when determining your eligibility for a rate reduction is your credit rating. A good credit rating means to them that you're less risky overall, because you have a history of making payments on time and in full. If they see this as being the case for your financial history, then they'll be more inclined to trust you with lower rates.

Another factor in deciding whether or not to reduce your card interest rates is your level of debt. If you have less of a good credit rating, you can still get what you want if don't have a lot of debt compared to the money that you make. Of course, if some of your debt comes in the form of a big balance on your card, then you're probably going to be hard-pressed for confidence in convincing your card company that you deserve lower interest rates. Ideally, you'll want to clear your card of debt before you approach the idea of reducing your interest rates.

One thing that card companies pay attention to carefully is the amount of money you pay monthly. If you only make the minimum payments each month, they'll definitely consider this as something against giving you lower rates. However, if you always pay what you owe on time and completely, then they'll most likely be willing to work with you.

Obtaining a lower interest rate isn't very challenging. There's multiple aspects involved, each of which can be tackled independently from one another that benefit the sum of their parts. Of course, if the company refuses to give you a lower interest rate and you know you're a good customer (and you inform them of such), you can go on the offensive and claim to look elsewhere for a new card that will provide you with the rates you want. You have the right to do this, too. There are plenty of other companies out there that will be willing to provide you a card. Just do the smart thing and compare them first and carefully determine what their policies and terms are.