Reducing Credit Card Interest Rates For More Affordable Repayment Costs–Options For Cardholders To Find Lower Rates

When it comes to reducing credit card interest rate many consumers may find that it’s not that easy, in certain conditions, to find more affordable rates on credit cards, as there are rules in place thanks to the CARD Act which has led some credit card lenders to see their income from certain aspects of credit card lending decrease, and as a result, they are looking for ways to make up these losses in other areas. Obviously, for lenders who have seen decreases in certain areas of their credit card business, offering lower interest rates may not be an option for some consumers.  Yet, there are not only new credit card rules that may help cardholders find a lower interest rate, which could help lower repayment costs, but some cardholders have simply begun a dialogue with their lender to discuss more affordable options.

Cardholders who may be struggling under the weight of an interest rate on their credit card for one reason or another may have their credit card rate lowered as a result of provisions in the CARD Act due to the fact that this new set of credit card rules requires that issuers look at a customer’s account every six months to see whether their credit card activity would warrant a reduction in their interest rate. It was recently reported by CNN and other sources that some consumers are seeing lower rates after these first rounds of evaluations were completed, but continually lower rates may be unlikely as cardholders who are in a good credit position, in terms of their repayment history, will not always qualify for a lower rate every time one of these reviews is conducted.

However, cardholders who may be in a less than perfect credit situation could see decreases in their interest rate, again thanks to the CARD Act provisions, if they simply make responsible and timely repayments on their credit card debt and, as a result, increases in their credit score and more positive items on their credit history could lead to more affordable credit card rates. Yet, there are some consumers who are having trouble repaying credit card debts and are looking for ways to affordably erase what they owe, which would necessitate a lower interest rate on their current credit cards.

Some advisors and credit counselors who speak with consumers in this particular situation have often suggested that simply contacting one’s credit card company can be a first step that could pay off, in terms of helping these individuals find a more affordable interest rate. However, cardholders who may take this route and talk with their credit card issuer have, in successful cases, been individuals who have made timely repayments on their credit card debts in the past, may have kept their debt low, and overall, have simply been responsible when it comes to credit card use and debt repayment. Some consumers have been able to call their credit card company, explain that they are experiencing financial difficulties at the present time, and under certain conditions, these cardholders have been offered a lower interest rate or even forbearance on paying credit card debt until they get back on their feet.

While this is not an everyday occurrence, it is an additional method that consumers have used to attempt to gain some control and affordability over their finances, before turning to alternative options like credit counseling. Yet, advisers also state that consumers who may have a high rate associated with their credit card simply need to spend within their means and avoid carrying a balance, as promptly paying off the entirety of one’s credit card charges each month will be the only way to truly avoid excessive costs related to interest.