Lowering A Credit Card Interest Rate May Prevent Delinquency But Can Cardholders Get A More Affordable Rate From Their Lender?

Consumers have been questioning how they may be able to lower the interest rate they currently have on cards that may be either carrying a balance or come with an interest rate that is higher than they feel may be appropriate for their financial position, but of course this is not a new issue as many cardholders have often fought to get lower rates on their credit card especially when they have a good history and a positive credit score. Yet, there are some aspects of finding a more affordable rate on credit card debt consumers may still not be aware of, which may need to be covered for those who are new to the credit card game or who may simply have never considered pursuing a lower rate on their current lines of credit.

To begin with, there are some rules in place that can help consumers get a more affordable rate but before any help may be found by a consumer, a positive credit history and a good credit score will be required before any rate reductions may be seen. Typically, lenders will not be required to lower an interest rate on a consumer’s credit card, but there are some exceptions, yet this becomes even truer if a consumer may have a shady payment history or a questionable payment record with a particular credit card lender.

There are some companies who may look at a consumer’s payment history with that particular institution, but many will look at consumer’s overall credit history and score before making any decisions on whether a low interest rate can be offered at the present time. There are some new rules that are part of the CARD Act that put caps on interest rate increases that may enacted by a lender, but there are also requirements by credit card lenders to give an advance notice if a rate increase is to occur, and this is typically 45 days so that a consumer can prepare for potential rate increases on their current card.

There are some rules that may require that a particular credit card lender review a cardholder’s credit activity and if improvements in the cardholder’s score and payment history are made this could lead to a lower score but some consumers may simply have to contact their credit card company to inquire about a rate reduction. While some consumers have reported they were denied initially when speaking with a representative from the credit card company, it may be helpful to speak to multiple representatives to make sure that a rate reduction is truly unavailable for a particular card holder.

While there are some consumers who have simply paid off high interest credit cards and have opted to take advantage of new credit card offers that may come at a lower rate, consumers might want to exhaust their options for getting a lower interest rate first, as there can be complications when it comes to getting a new card and having multiple lines of credit open for some borrowers. Yet, this is not always a problem for consumers so the benefits of this option will differ from one person to another, but consumers who are simply at the point where they are going to contact their credit card lender should know that there are in fact opportunities available thanks to new rules and even policies at a credit card agency that can help them find a more affordable rate provided they have been a good customer in terms of their payment history and are in a good financial position.