Digital News Report – You probably have become more aware of what you current interest rate is and the amount you pay on interest on credit card balances since the new CARD act law has made credit card companies explain clearly these numbers. You might have also had your minimum balance increase because of the new regulation. One thing you can do to help pay off your credit card balances is to lower the credit card interest rate.
There are a few things that you can do to get a lower interest rate. One thing is to contact the company that you have the credit card balance and ask them. You many have to suggest that you are considering transferring your balance to another credit card company that will offer a lower interest rate. This may prompt them to offer you a better deal.
You can improve your credit score. By improving your credit score you can lower your credit card interest rate. Making more than the regular payment and making your payments consistently on time are two easy ways to improve credit scores. Having your credit maxed out is not good for your credit score and you should try to reduce the amount you owe for the amount of credit that has been extended to you to no more than 20 percent. You are entitled to one free credit report each year from the credit reporting agencies.
The FTC warns about companies that advertise to lower your interest rate on your credit cards. They say that you have just as much luck reducing your credit card interest rate than paying a company to do it for you. If you give out your credit card information to some of these companies you might be giving out your card to an identity thief. So if you receive a telemarketing call promising to lower your interest rate, the FTC recommends hanging up the phone.
If the credit card company that you have asked to lower the credit card interest rate says no to a reduced interest rate, then it is time to shop around for a lower interest credit card balance transfer offer. Do you have another credit card that doesn’t have a balance? If so contact that credit card company and ask them if they have a balance transfer offer. Ask them if they have a low interest fixed rate until the balance is paid off deal. Those are usually best if you have debt that will take longer than 6 months to pay off. If you know you can pay off the debt in less then six months you might want to look for a 0 percent balance transfer offer that expires in six months.
You can’t usually do balance transfers from the same card issuer. So if you have two different credit card accounts with the same bank, it won’t usually work. If you do sign up for a new credit card from a different bank, you will want to read the fine print about annual membership fees and interest rates after the promotional period is up. You might also be able to lock in a low interest rate balance transfer when signing up via the telephone. One problem with getting a new credit card, is that you could be tempted to charge more and increase the amount of debt you owe. Always be careful and if you need help dealing with your credit card debt you should seek the help of a credit counseling agency. These are just a few basic ways that an individual can go about lowering credit card interest rates on their credit cards and seeking out help from a professional financial counselor can sometimes be helpful.
By: Victoria Brown