Credit card interest rates are obviously one of the factors that many consumers must combat when repaying debt obligations as some consumers may have to carry a balance on certain cards due to their financial position, the spending habits they may implement, or due to the fact that an emergency may have required them to charge on their credit card an amount higher than they can promptly pay off, which can all lead to higher overall payments. Obviously, consumers are always looking for more affordability when it comes to their credit card payments and some have even gone so far as to implement various methods to help them find a more affordable credit card interest rate and ultimately a more affordable card.
Currently, Bankrate.com states that the average interest rate on fixed rate credit cards stands at 13.36% and variable rate cards have an average APR of 14.43%, but many consumers may be able to acquire a lower rate than these averages on certain types of credit cards, but this will depend on their financial position. Consumers must understand that if they are looking for a lower interest rate on their credit card and more affordable monthly payments as a result of a low-interest rate, they will have to be in a good credit position, in terms of their credit score and history.
The CARD Act currently requires credit card lenders to review a consumer’s credit card history, which can be helpful when it comes to getting a more affordable rate. Some consumers who may have drastically improved their credit score and built a much better credit history may be able to see a reduction in their interest rate as a result of these new rules, but this is not something that will necessarily reduce a credit card’s interest rate by any drastic percentage, yet it could be one way that consumers see a lower interest rate on their credit card.
Yet, some consumers who may, again, carry a balance on their credit card will obviously still see higher overall costs when it comes to their credit card payment obligation, and if unchecked, this habit could be problematic in the future. Understandably, there are some men and women who may use their credit card regularly and are able to pay off what they owe, but if a consumer constantly carries a balance, they will still meet higher overall costs no matter if they can find a lower interest rate on their card or not. While formulating a budget that will allow a consumer to pay off their credit card debt in total from month to month is one way of reducing the payments that an individual must make, there are also some cardholders who may be able to simply contact their credit card lender to inquire about lowering the rate.
Individuals who may be in a good position in terms of their credit score and credit history may be able to negotiate a more affordable rate with their lender, if proper research is done on current credit card offers and interest rate averages. While there are also numerous advertisements from a variety of financial institutions that may offer consumers the option to acquire a new card and transfer balances, this is another method that some consumers have used to find more affordability in their credit card interest rate and payments, as a new card may simply come with a lower rate than a consumer’s current credit card. If this is the route a consumer takes, many advisors often make mention that closing out a credit card account can cause a drop in an individual’s credit score, so this may need to be avoided and a consumer might simply use the higher interest rate credit card periodically throughout the year to make affordable purchases, so as to avoid damage to their credit score.
Yet, when it comes to finding affordability on an individual’s credit card payments, looking for a more affordable interest rate can be helpful if, again, a cardholder constantly carries a balance. Avoiding this practice of carrying a balance will, obviously, lower the consumer’s overall credit card repayment obligation, but if consumers are simply looking for ways to find a more affordable rate, considering a new card that offers a balance transfer option, building a better credit history so that the CARD Act may offer a lower interest rate, or simply talking with a lender are all steps that some consumers have taken to lower their interest rate but consumers must also keep in mind that there are no guarantees when it comes to getting a lower rate on a card and some may simply have to deal with the current interest rate they have on open lines of credit.