When you sign up for a credit card one of the biggest factors to consider is the credit card rate. Having high credit card rates means that you will end up paying a higher price to borrow money on the card. Individuals that are unable to control their spending can easily spend thousands of dollars in interest due to the credit card rate. So what can you do if you are struggling with high credit card rates and high amounts of debt on the card? Here are some tips to try out.
Tip# 1 – Ask for a lower interest rate
One way to get the rates down is by calling your credit card provider and asking them for a lower rate. If you explain your situation to them and they find that you have been a good customer, they may be able to reduce the rates on your credit cards. As long as you don’t keep adding to the debt, you can easily start paying down your debt in no time. Sometimes all you need to do is threaten to close your account and it will get the lenders pulling strings to keep you on as a satisfied client. Keep in mind that the first person you talk to usually will not have the authority to reduce your credit card rate so you should flat out ask when you start the phone call if they have the authority or not. This way you can get right to a supervisor that can help instead of talking to a regular customer service rep for 10 minutes before getting transferred to the person that can actually help.
Tip # 2 – Open a new account
Many promotions are available for credit cards where you are able to qualify for a balance transfer and have 6-12 months of 0% interest. A balance transfer offer is a great way to reduce your debt in a timely manner, just make sure you are taking advantage of this time and that you are really paying as much as you can toward the balance before the interest starts to kick in again. Research credit card rates online in order to find a company that can provide you with the lowest interest rate. Always consider if there is an annual fee or other charges that are part of the account as well to save money on your monthly credit card payment.
Tip # 3 – Quality customer
To get creditors working for you, it helps to become a quality customer for them. You can become a good customer by paying your bills on time each month. Consider enrolling in direct deposit as this will be able to help you avoid missing any payments. Always pay the statement balance or at least consider paying a higher amount than the minimum account balance that is due. You also need to try and keep your balance on the account below 30% of the credit limit available in order to improve your credit rating.
These are just a few ways in which you can qualify for lower credit card rates and to start saving money on your credit card debt payments each month!