The Best Credit Card

The good news is that there are ways for you to lower the interest rates applied to your account. Lower interest rates mean savings for you in your credit card dues. Successfully lowering down the interest that you pay also helps you stay away from debt and manage your credit cards more effectively.

For those in the US , the CARD Act has some regulations which can help card holders enjoy a lower interest rate. One provision in the act states that credit card companies should assess an account every 6 months to determine whether the reason for the increase in interest is no longer present. For example, if the cause of the increase is a late payment, the interest would be re-assessed after six months should the account show exemplary payment behavior. The key here would be to regularly pay what you owe to have your rates reduced.

The other method is through negotiating directly with the credit card issuer. Though there are no guarantees, it won’t happen if you don’t try. What you could use as bargaining chips would be how long you have been a customer, that you are a regular purchaser, and that you would like to continue your relationship with the card issuer. You can also do some research as to whether you’re eligible for any new interest rates your issuer would give to new and existing clients. It wouldn’t hurt to ask your card issuer if they can offer you something better.

Although, the time when it would hurt to have your interest rates lowered down would be when you don’t have a stellar payment history. A request for lower rates usually entails a re-assessment of your account. If you have been not a great customer for the card issuer, the opposite effect might happen. You might get slapped with a higher interest rate or get some form of penalty when you make your request. So, it’s essential that you make your request with a good credit standing and history.

The last option for you would be to switch card companies. You can also use this as one of your negotiation tools. Credit card companies are more willing to keep a good client than get new ones. There are transfer cards being offered today with low interest rates. You would have to do a lot of shopping to find one that has the lowest rates. But take note that to enjoy the low rates, credit history would still play a major role. Otherwise, transferring would make no sense. Another thing that you should be aware of is that closing an account generally means a dip in your credit score. So you also need to have the proper timing when closing your account.

You don’t need to be stuck paying high interest rates, not if there are these options for you. But remember that these options would only work if you have built a good credit score and payment history for yourself. Being a good payer is still the basic of the basics.