The interest rate on today’s credit cards rate averages about 14 percent. Although that sounds crazy in these troubled economic times, consumers don’t need to pay such high rates. Cardholders should ask for a lower interest rate on their credit card if you are currently paying over 10 percent.
You will have a very good chance of obtaining a lower credit card rate if you call your card issuer and understand how to lower credit card rates. It’s been reported that over 50% of all cardholders who call their card issuer, were actually able to get interest rate reductions of 7 to 10 percentage points by simply asking for a lower interest rate.
Your chances of getting a lower rate can be greatly improved if you:
1) Are a long time customer
2) Have a good credit rating
3) Pay more than the minimum payment required each month
4) Have an excellent payment record with your card issuer
A lower rate is possible even if you don’t a perfect credit history. Your credit card rate may be lowered ten percent, even if you have missed payment due dates and are currently paying a default rate as high as 30 percent. Just ask your card issuer.
The credit card industry is very competitive even in these troubled times, and it costs a lot to get a new customer. At any given time, there are always cards available with a significantly lower interest rate than your current rate. If your card issuer will not offer you a lower interest rate, they know that you can always close your account and transfer your balance to a competitor’s credit card.
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