People in all walks of life want a lower interest rate however, it is hard for me to give one piece of advise and have it fit everybody’s financia cvv sitesl situation to the tee! It just doesn’t work that way. What I can do however is give you a few different ways to reduce your credit card interest rates and allow you to pick which one will best fit your unique financial situation!
When i am asked how one of my clients can reduce their credit card interest rate, one of the first questions I’m going to ask is “How good is your credit? ” The better your credit score is, the more options you have to reduce your credit card interest rate. If you have good or excellent credit, one of the best ways you can reduce your interest rate is by getting a balance transfer credit card. Balance transfer credit cards are ones that allow you to use one credit card account to completely pay off the other.
Lets say you are something like a great majority of American consumers and your credit isn’t all that great. This is completely understandable, if you don’t have excellent credit, that doesn’t necessarily mean that you have to deal with a horrible interest rate. There are ways to get a lower interest rate other than using balance transfer credit cards. These include do it yourself interest negotiations, financial hardship programs, debt consolidation, debt settlement, and much more! I’m going to explain to you how to use balance transfer credit cards, negotiate credit card interest rates, apply for a financial hardship, and decide if debt consolidation or settlement is your best option.
OK, so you have pretty good credit and you seem to make all your payments on time. You’ve never went over your credit limit and you don’t see why your interest rate is so high. You’re starting to get frustrated with the amount of money you are spending in interest and finance charges so you do a little research. You’ve heard a thing or two about balance transfer credit cards but you don’t know exactly how they work or what is the first thing you need to do to get started. That’s OK here is everything you need to know.
First off, when looking for a balance transfer credit card, it is important to remember a few crucial steps to keep your financial information safe. When filling out an application, make sure that the application page is a secure web page. As far as most credit card websites are considered, the whole website won’t be secure because there is no need for it to be. However, never fill out the application if the application page is not secure. This may put your personal information in jeopardy. It is very easy to tell if a web page is secure or not. When you get to the application page, take a look at the address bar at the top of your browser. If the web address starts with http: //, this page is not a secure page. However, if the application pages url starts with https: // this is a secure page and your information is safe.
The next thing you want to look at is the introductory interest rate that the credit card offers. Due to huge competition in the credit card industry, most balance transfer credit cards offer you a 0% introductory period for balance transfers that lasts anywhere from 6 to 12 months. Make sure that the balance transfer credit card you decide to use has a 0% introductory APR as well. If not, I’m sure you can find a better offer.
Also, make sure you understand how much money the transfer fee will be. Yes I said transfer fee! Banks don’t do anything for free anymore. In most cases the fee to transfer a balance will be anywhere between 3% and 5% of the amount of the overall transfer. It is important to be aware of this fee but not to let it scare you off. Even though there is a fee for the transfer, if you are receiving a 0% APR for 12 months, you can consider this fee as the interest rate on the account for that first 12 months. In most cases, it will still be less than your current interest rate.
Make sure you pay attention to the standard interest rate on the account. Always remember, although a 0% introductory interest rate looks great, it doesn’t last forever! The standard interest rate will be the interest rate you pay once the introductory period expires. Make sure that the standard interest rate on your new balance transfer credit card is less than what you are currently paying. If not, the transfer may cost you more over the term of the debt and it might not be in your best interest.
So you’ve been a pretty good debtor. You were only late once this year, and you haven’t gone over your credit limit. You like the bank you are currently with and you don’t want to have to go through the hassle of transferring balances. You don’t want to close your account and your not quite sure of what you should do but you definitely don’t appreciate your interest rate! Credit card interest negotiations might be your best bet.
Credit card companies just like any mom and pop store, rely heavily on consumers to keep their company strong. Look at it this way, if no one used the credit card companies, there would be no reason for them to be in business. With that said, some credit card companies are willing to reduce your interest rate to retain you as a client. This is a fairly simple process.
The first thing you want to do is call your credit card company. Continuously press 0 until you get to speak with a live representative. When the call does get transferred to a live representative, simply say, “Hi, I was going through my credit card statements and I noticed how high my interest rate was. I love working with you guys, I like my card and the rewards you have to offer me, but, I have many balance transfer opportunities and I don’t see why I should keep my balance with you if i can pay a lower interest rate. Is there anything you can do to help? ” That representative is either going to put you on hold or transfer you to the balance retention department!
If transferred to the balance retention department, use the same line “Hi, I was going through my credit card statements and I noticed how high my interest rate was. I love working with you guys, I like my card and the rewards you have to offer me, but, I have many balance transfer opportunities and I don’t see why I should keep my balance with you if i can pay a lower interest rate. Is there anything you can do to help? ” They will then put you on hold. In most cases, when the representative gets back on the phone, they will give you two options. Either you can have a very low interest rate for a short period of time or, they will reduce your interest rate by a few points for the term of the debt. I know the extremely low interest rate is always more appealing, however, I would advise taking the minor reduction for the life of the card. This will be the option that saves you the most in the long term.