As convenient as credit cards are, their interest rates can be the heaviest of burdens. It pays (almost literally) to learn different ways of lowering your interest rates on credit cards so that you can save money, build your credit, and benefit from all your hard work.
Negotiate Terms
Most credit card companies offer more than one card, each with its own benefits. You may start with a high interest credit card, but after making your payments on time, it may be possible to move to a card with a lower interest rate. You may be able to negotiate lower interest rates on your existing credit card, but it is more likely that you’ll be offered a new one. One way to start the negotiation is by asking for a card with lower interest rates as opposed to accepting an increase in your credit line.
Consolidate Debts
Pick your card with the lowest interest interest rate. Then, move the majority of the debts from your other cards to the one with the lowest interest. Try to keep a small balance on any of the cards you keep because the bigger the line of credit you have, the better off you are. Don’t make the mistake of closing all your accounts after you move the debts to the card with the lowest interest rate. Otherwise, you’ll still have the debt on your report, but it won’t be offset by a high line of unused credit.
~Here’s to Your Financial Health!
