Lower Your Credit Card Interest Rate


A great way to lower your monthly bills is to lower your credit card interest rate. You may be paying more than you need to because of inflated interest rates. Follow these tips to learn how you can lower your credit card interest rates and save money.

Find Out What Rate You Should Qualify For

Credit card interest rates are based on your credit worthiness, or your credit score. You can find information about interest rate national averages based on credit scores on CardTrak.com. The national averages group credit score ratings in categories.

Super-prime credit scores are between 760 and 850. Prime credit scores are between 660 and 759. Sub-prime credit scores are between 500 and 659. Punitive credit scores are below 500. In October 2011, sub-prime borrowers received an average interest rate of 10.59 percent. The average interest rate for prime borrowers was 15.44 percent, 26.01 percent for sub-prime borrowers and 29.99 percent for borrowers in the punitive category.

First, check your credit score. If your credit score puts you in the super-prime category, you should not be paying interest rates in the prime, sub-prime or punitive categories. You may have started out in a lower credit worthiness category, but increased your credit score. If this is the case, your credit card company may not be aware of the changes in your credit score. There may be other reasons that you are being charged a higher interest rate than other borrowers in your credit score range, but you won’t know these reasons unless you ask your credit card company.

Call Your Credit Card Company

It’s unlikely that your credit card company will lower your interest rate without some encouragement. You will have to call your credit card company to request that they lower your interest rate. It may be a little difficult to reach a person that has the authority to make changes to your account. The trick is to ask for a supervisor right away. If the representative is hesitant to transfer the call, ask for the representative’s name and identification number. This will typically get you passed along to the supervisor pretty quickly.

Explain your situation to the supervisor, and let the supervisor know that you know your credit score should qualify you for a better interest rate. Ask the supervisor why your rate is higher than the national average for your credit worthiness, and ask if the company is able to work with you to negotiate a better rate to keep your business. Explain that you have received offers from other creditors that offer lower interest rates, but that you would really like to be loyal and stick with this company. It may take a few calls to get your rate lowered. If you are not seeing any progress, you may want to consider applying for a credit card that offers zero percent interest rates on balance transfers for new cardholders.

Increase Your Credit Score

If your credit card companies are unable to work with you to lower your interest rates, you should work on increasing your credit score. You will have more talking points when you speak to the supervisors to request decreased interest rates if you work to improve your credit score. There are several things that you need to do to improve your credit score. The most important thing is to make sure to make your payments on time. You should also try to make larger payments on your credit cards so that you can decrease the amount of your total available credit that you are using.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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