Top 3 tips to get a lower credit card interest rate

Checking Credit Card

There’s no doubt that credit cards can really come in handy whenever you need access to money or if you want to pay down a bigger purchase in time. However, the interest rates most cards come with make carrying debt an expensive proposition. Considering this, it’s essential to pick a lower credit card interest rate if you’re looking for a good deal and plan to carry a balance.

But what if we told you that there are a few ways to secure a lower credit card interest rate on your credit card debts? Sounds good? Stick with us for a few minutes, as we’ll discuss this in detail. But first, let’s answer one of the most important questions.

Improve your credit score

This is, by far, the most important method of obtaining a better credit card interest rate. However, improving your credit score, before applying for a new card, can be difficult sometimes, depending on your financial situation. But as long as you pay your card bill – on time! – each month you should be fine.

Another recommendation towards this is to avoid opening too many new accounts, as this could lead to hard inquiries on your credit card report while closing accounts will reduce your credit card utilization, both of these impacting negatively your credit score.

Opt for a balance transfer card

Another relatively easy way of paying less interest is to apply for a balance transfer credit card. Most of these allow you to secure a 0 percent intro APR on transferred balances for at least a year.

Remember, balance transfer fees are usually required for such offers, so it’s less likely that you will get your hands on that 0 percent APR for free!

Ask your issuer!

Finally, in order to obtain a lower credit card interest rate, you can also directly call your issuer and ask for it!

Sure, there’s no guarantee that you will get it but, in the end, you don’t have anything to lose. In fact, if you have a good history of responsible credit use with your issuer, there’s a high chance they will lower your interest rate, just to keep you as a client. Additionally, you can try threatening with a cancelation and considering other issuers, in order to make them more willing to negotiate.

And if they still say ‘no’, you can always come back later, after your credit score is improved.