Thursday, April 8, 2010

4 Ways To Lower Interest Rates On Your Credit Card

Do you pay 25% on your credit cards? 20%? 15%? Whatever you pay, chances are you can be paying LESS.

Here are some methods that have worked for us:

1)  ASK
              Yes. This has been the most effective way of reducing our rates. We simply asked them to. Sometimes they said no, but most of the time our rate was reduced. You can easily drop 5%-15% off of your interest rate just by asking!
               I know, I know. The tunnel seems dark and long if you don't already have good credit. But it isn't some mysterious wishing game. There are proven steps you can take to improve your credit. Better credit = better rates
               This, by the way, is one way to help improve your credit. Pay your bills on time every month. Timing matters.
               We've gotten in on a couple of 1.9% introductory offers and then, when time came for the rate to be increased, we paid it off or transfered the balance. The risk here would be losing track and forgetting, especially if the 'increased rate' is a high one.

I'm sure there are other ways to do this, this is just what we've done and has worked for us.
Our highest interest rate is currently 19.8% (I think that was an 'introductory offer' and the company is not willing to lower rates. They ARE willing to give us higher limits though - go figure. So far, we maintain a zero balance on that one!)
Our lowest is a 1.97% (on cash-back only. That one's great for transferring balances)

Hmm. Now that I look at these numbers, I think I need to be making some more phone calls ...

I'd love to hear how you've reduced your rates!

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