Being stuck with a high credit card interest rate can be costly. Those that do not pay off what they owe every month will be charged interest based on this rate. Lower rates simply add less money to existing card debt so it makes sense to try and find them. How can consumers lower credit card interest rates?
Use Credit Card Comparison Sites to Find Lower Rates
It may be worth first looking at online sites that bring together many different credit cards and their rates and terms. These tools will give a snapshot of the rates on offer at any given time. This can be a useful way of assessing whether an existing rate is on the high side and which other options are available.
Bear in mind that the comparison that is done here should not be based on any introductory or special rate offers. The underlying rate of interest that will be charged once a deal is finished is the key factor to consider. At this stage the consumer may decide to try for a new deal. Alternatively, they may try a different tack and talk to their card issuer.
Try to Negotiate Lower Credit Card Interest Rates Directly
In some cases consumers may be able to talk to their card issuer and persuade them to change the interest rate they are charging. If, for example, they have been offered a lower rate with a different company, then their existing issuer may agree to alter their deal accordingly.
This kind of negotiation may be worth a try as some companies will agree to change terms to retain custom. But it should be remembered that they do not have to do this. Some may simply refuse to play ball.
Assess Credit Scores and Try to Improve Ratings
Those with less than impeccable credit histories are likely to be paying higher credit card interest rates as a matter of course. Having no credit or impaired/bad credit may mean having to pay more to get a card in the first place.
There are, however, ways to improve credit scores and ratings over time. If a consumer can do this then they stand a good chance of being able to negotiate a lower rate or to get approval for a new card with a better deal. This may not be a quick fix but it is possible. Getting a free credit check may be a good place to start.
Those that always pay off their credit card balance in full may not need to consider the interest rates that come with their cards as they may never be applied. Those that carry over debts, however, may want to do what they can to help lower credit card interest rates to save as much money as possible.