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How To Reduce Interest Rates

Credit card debt can be a suffocating burden, but it doesn’t have to permanently be so hard to deal with. If you are prepared to send in a little extra each month, there are ways to quickly lower your interest rates on credit cards.

Getting better interest rates depends on how you can prove to credit card companies that you are a lower credit risk. If you are getting late fees, you must first bring your accounts current.

Identify the credit card with the highest interest rate. Make the highest monthly payment you can afford to that card each month, while making all of your other credit card payments. Make sure that you send in an extra $5 above the minimum payments on those cards to avoid slow pay penalties.

By sending much higher than minimum payments to that one credit card, you are showing them that you can afford more than what they previously believed. Do this for 4-6 months and you are ready to ask for a lower rate.

Call your credit card company and request a lower rate. Politely inform them of the solicitations you are receiving for low rate balance transfers and low rates on other credit cards. Give them an interest rate figure that you would like to be granted. You will likely be able to compromise on a rate that is 3 or 4 percentage points lower, which could save you hundreds of dollars each year.

Once you have done this, repeat the process. You can either switch your focus to another card or keep hammering away at this one card. It is up to you.

If you find that you cannot send more money than the minimum payments, or that you are even having trouble with those, consider seeking help from a reputable credit counselor.