According to most recent reports, a major consumer group conducted a study that said that it is pretty easy to get your credit card interest rates lowered. 59% of the credit card holders just called the credit card company and got a reduction in their interest rates instantly and the rate that was lowered was somewhere between 7-10 points lower than what they were paying previously. If you succumb to the sky-high rates on the credit cards, very soon you will land up in credit card debt for which you may have to rush to a credit card consolidation company. But if you’re financially diligent enough, you can easily negotiate with your creditors and lower the rate on the card to lower the monthly payments in return.
Here are some effective ways in which you can revise the interest rates on your credit cards.
Determine the rate that you’re paying now: The first step that you have to take is to take out the latest credit card statements so that you may get to know the current APR on the card. Usually the APR of the credit card is mentioned at either the top of the statement or at the bottom. If you still can’t find it, you can simply call your creditor and ask him about the rate that they’re charging you now.
Shop around extensively for a low rate card: Another step that you can take is to shop around extensively so that you can easily grab a low interest card in the market. There are too many credit card servicers that are waiting to get you as their customer. If you don’t want to fall into the trap of shady credit card companies, you should get multiple quotes and then settle with the best company that offers you a coverable rate and affordable terms and conditions.
Assess the rate that you should be charged as per your score: You should not leave everything in the hands of the credit card companies or the representative as they may sometimes take undue advantage of your ignorance. Instead, you should try to analyze the rate that you should be offered according to the credit score that you have. If you have a ‘super prime’ credit score, you should be getting a particular score and with a ‘prime’ rate, you should be getting another rate. Stay aware of what you’re being offered.
Compare the rate to the national average rate: One more thing you can do in order to achieve a lower rate on your credit card is to compare the credit card rate to a national average rate that you may easily get in some credit card websites. The most creditworthy borrowers may get a particular rate, the borrowers who have previously missed payments may get another rate and the promotional offers for the new customers offer a different rate. Therefore, stay aware of all such rates to stay informed.
Call your credit card company: The most effective way of handling the rate on your credit card is by calling your credit card company. Refraining from seeking help of the creditors is a mistake that most of you should avoid. Tell them about the financial hardship that you’re going through so that you can easily grab a lower rate. However, the reason should be logical and true so that your company doesn’t lose their trust in you.
So, if you’re overburdened with the weight of high interest rates on your credit cards, take the steps mentioned above so that you don’t have to face high interest debt in the near future. Though it is a fact that you can get help from credit card consolidation companies, it is always better to stay safe than sorry.