Lowering A Credit Card Interest Rate–Options For Cardholder To Reduce The Costs Of Repaying Credit Card Debt

Credit card interest rates greatly influence the total amount a cardholder must pay if they are meeting minimum payments on debts acquired through the use of credit as there are some cardholders who may practice loose spending habits but were easily able to meet the minimum payments thanks to an affordable interest rate, but if cardholders see an increase in their rate or currently have a high rate of interest on their credit card, this could mean the difference between a few hundred dollars and a few thousand dollars and overall credit card repayment costs.

While new rules prevent credit card lenders from increasing interest rates suddenly, there are still many men and women who could benefit from a lower interest rate on their credit card and there are some methods that advisers have suggested cardholders implement so that they can reduce the overall cost of repaying their debt by acquiring a lower interest rate. Cardholders are not always guaranteed a lower rate on their credit card, but as lending practices by credit card companies begin to loosen there may be more options available for consumers to acquire an affordable credit card, and if this is the case, speaking with one’s credit card lender is the first step to finding a lower rate.

Some consumers saw their interest rate increase before new regulations set forth by the CARD Act came into effect, and despite the fact that there are reports that credit card rates may be creeping higher, there are still affordable ways to handle credit card debt and even acquire a lower interest rate. Cardholders who simply contact their credit card lender and talk about options for lowering their interest rate may find their lender will work with them by offering a more affordable rate.  While this is usually only a good idea for cardholders who have a good credit score and payment history, as those with a low score or a history with various missed payments will be unlikely to find much help on the part of their lender.

Yet, credit card companies usually don’t contact a cardholder to inquire if they would prefer a lower rate, so calling one’s lender and frankly asking for a rate reduction is usually the first place advisers suggest cardholders start.  However, Walletpop.com also suggests looking at your credit score and average rates for cardholders in your position to see whether your current rate is fair.

While asking for a lower interest rate may be easier for those who have offers or options for lower cards with other lenders, talking with a credit card lender is necessary if a consumer is being weighed down by interest rate charges. Again, this is not guaranteed to lower a consumer’s interest rate on a card, but before exploring alternative options like other credit card offers or a debt relief plan, talking with a lender can yield the results a cardholder needs for more affordability.