Lower Credit Card Rates

First Published Date : November 6, 2010 ADawnJournal.com

If you are dealing with debt and you want to try and get your head above water, then one of the best things you can do is to look at lowering your interest rates. Since credit card debt is one of the most common forms of debt, you should look at lowering your interest rate with this. It is quite easy to do, and all you have to do is follow the instructions in this article to lower your credit card interest rate.

Many people do not realize that you can lower your credit card interest rate through something as easy as a phone call. Remember, if you default on your credit card, it costs the credit card company money. The credit card company does not want that, so they will work with you to help you pay off your credit card. Therefore, all you need to do is call the credit card company and call them, asking that they convert your credit card to one with a lower interest rate. One good thing to do is to show them that you have always paid your credit card, and been a credit card customer for a long period of time. This will help them lower the credit card interest rate in your favour.

If they do not, then you can search for a credit card company that provides a better interest rate on their cards. Look for cards through local banks and contact them to get a credit card. Once you have contacted them, you will get a credit card application. Then, fill it out, send it off and when you get your new credit card, you just need to transfer the balance of your current credit card to the new credit card.

It is important to point out that when you do get a credit card and do a transfer, you will be subjected to a transfer fee, but usually it is just a percentage of what you are sending over to the new credit card.

If you think that credit card interest rates are not that big of a deal, then look at it this way. If you have a credit card with $10,000 on it, and your interest rate is 19 per cent, then you will end up paying $1,900 in interest per year. However, if you are able to lower your interest rate down to nine percent, you save $1,000 per year in interest. That little bit of a decline will save you a lot of money and that will help you get out of debt much sooner. Sometimes it is as simple as just asking for a new interest rate, but if that doesn’t work, then you have to do a bit more work and yes, get a new credit card. Although when you get your new credit card and transfer the balance, you can then cancel the old credit card, thereby eliminating that bad interest rate forever.

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