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Lowering Your Interest Rates
Nobody likes to pay too much for purchases or for loans. If you can get a discount, why not use this opportunity? A penny saved is a penny earned. Lowering your APR lets you cut down credit bills and therefore save money. If you pay high interest rates, there are several ways to reduce them. So, if your APR is above average, take immediate actions. Credit card issuers are not so generous to reduce interest rates automatically and lose their profit.
The most popular method is to call your credit card company and ask for a lower APR. Keep in mind that your chances are best if you have had a credit card for at least one year, are not maxed out or close to your credit limit, and make your payments on time. Otherwise, asking for APR reduction is just like asking your boss to raise your salary because you are a nice person. Your demands may be met with an ironical smile and a couple of chuckles.
Credit card companies are commercial organizations, not charity ones. They will not part with their money unless there is a certain business reason to do so. You need to have that reason. Tell your credit card issuer that you have received a better offer from another credit company. Or you can ask to reduce your interest rates due to the increase of your credit score.
Requesting to lower your APR, be polite and firm. Many credit companies' representatives try to postpone your request for as long as possible. So develop good negotiating skills. If you are not sure that you are persuasive enough, write and rehearse your speech. You need to explain your credit card issuer that you would not leave them but you have much better offers. It is easier for credit card issuers to keep an old client than to find a new one. The competition on credit market is tough, so it is possible that the supervisor will change your APR to your advantage. Anyway, you have lost nothing by asking - except maybe a little dignity.
The other way to obtain lower interest rates is to apply for a balance transfer credit card. It allows you to transfer your debt from a high APR plastic to a low APR plastic. Balance transfer offers come with 0–1% introductory interest rates for a fixed period of time. When you are looking at introductory rates, you should understand that they are just that: introductory.
Sooner or later they will finish and you will switch to a regular APR, which can be much higher. Thus, pay attention to low introductory rates, as well as to the period after these rates will go up. You can end up in a vicious cycle to compare credit cards each time the introductory rates are over. Changing credit cards constantly can lower your credit score and correspondingly your ability to qualify for the best low APR credit cards in future.
Interest rates often matter the most when you are choosing what credit card offer to apply for. The lower APR you have, the more beneficial the credit card is. Don't lose money on interest rates that are too high. If you think you are paying more than you should, get those rates lowered.
