Three Ways To Lower Your Credit Card Interest Rates
Little gives a consumer credit privileges other than paying off your bills promptly and in full. If you ever want to get those great credit card rewards, you often need to be aware of the credit card companies that pay off your bill with extra cash, and the potential interest rates they’ll charge you.
Many of us have a single credit card, perhaps more than one. And if you’re like many American consumers, you may only be a month or two behind in the payment of our bills. So before you hesitate to call in an entirelyworking second card or go ahead and ask for a bit more from your credit card lender, you should always go and ask for a lower interest rate.
Bank higher offers
Credit card lenders compete for your business, and in this computerized world, where the competition for your dollars is at its highest level, personal finance spending got pushed up in April 2008. Every offer comes with a initial rate, followed by an ongoing Raise lure.
When comparing cards, look for a card that offers an introductory rate of 0% APR. Expect that rate to change after 12 months-after about 18 months, a time when you may spend beyond your paying capacity, the card may cost you about 10% in interest each year. Make sure the compromise between your interest rate and any other perks offer is low or zero, and don’t even think about agreeing to pay a higher rate if the introductory rate will go up unless you’re extremely sure you can pay off your new expenses quickly.
Now, a course of action, if you can keep good credit ratings, you can always go back to those card issuers who advertise “no annual card fee” and those cards that offer “no credit card balance transfer fee” when they first launched. To your credit you will arrive in person to a lower, much less costly annual interest rate than many of the cards you currently hold, and you would get the benefit of that card specifically designed to appease the most grabbing credit consumers.
If you have national identity, you may submit a completed-paper application concerning your new card. You are going to probably need to give information like name, address, residence; and Social Security number. You will get a letter in the mail that erroneously informs you that you do not qualify for the card. Don’t apply for another card until you’ve verified your credit record, because they can easily turn down your application. There are other things you can play with:
1. The credit card companies may try to get you to send in any additional information to them from outside your home, because they are each looking at your report from a different agency and each one may have slightly different information. Think of this as an elaborate game of cat and mouse played on your behalf. You might have a card with a huge spending limit and higher interest, or a card with lower spending limits but a lower limit of available credit. One might want the card with higher spending limits, but it also lets you have more flexibility in what they call Revolving Credit. It all adds up.
2. If you have a customized card, you can use your preferred checks with all cards. Having checks is very helpful with many cards simply because it’s easy to handle and you can often use smaller, more frequent purchases and set up automatic payments. Have multiples of checks and a couple with different companies.
3. The third tip you can give right now is that you should always be disciplined when it comes to having a revolving credit card. You’re not going to be able to close all your cards down after you have a default or two recorded on your report. You need to learn to focus on which cards you need to have and keep then in a place that’s not easily accessible to access them. Let’s say you have four cards; two with the lowest balances and two with the highest. You need to focus on the cards with the very lowest balances to keep them there. Then, when you need a larger shopping capability or some allowance (usually after you have satisfied a couple of cards) you can go back and pay the minimum against those two cards, but you will only demand for the card with the lowest balance. Let’s say you owe $900 on a card with a minimum monthly payment of $20 and $30. to keep costs relatively low, it would just make sense to pay the $20 on, and pay $30 against the $900. That way, you only keep yourself from having credit card debt and also enable you to have payment flexibility to make larger payments on larger amounts. You absolutely must constantly remind yourself that credit is not free and should not be taken lightly
Remember, the best way to approach your credit is with knowledge about it and discipline in your purchasing.