4 Ways to Reduce Credit Card Interest

Having high interest rates can severely damage someone’s financial status. At first it seems manageable, but then slowly you find that the minimum payment is becoming harder to pay since most of your payment is going toward the interest. Most people think that they are stuck with the rates they have but there are few steps you can take to reduce credit card interest.

Having high interest rates can severely damage someone’s financial status. At first it seems manageable, but then slowly you find that the minimum payment is becoming harder to pay since most of your payment is going toward the interest. Most people think that they are stuck with the rates they have but there are few steps you can take to reduce credit card interest.

First, call your credit card company and ask for a lower rate. A lot of times lower rates are available but only at the customer service representative’s discretion. So for that reason, be polite and kind on the phone so that they want to help you. Emphasize how long you’ve been a customer and what a good customer you’ve been and your loyalty to the company. If the representative refuses to assist, politely ask for their supervisor since they may have more ability to change your rate. Sometimes a lower rate will not be available and that is not always the company’s fault, but it can never hurt to ask.

If you cannot get a lower rate simply by asking, then to reduce credit card interest you should ask if you could convert your card to a different type that may have a lower interest rate. For example, most rewards credit cards will have higher interest rates than ones that do not offer such perks. So if you can transfer your account to a non-reward card, then you may then qualify for a lower interest rate.[br]

If these things are not possible then your best option may be to do a balance transfer to a different company. This is a great way to reduce credit card interest since the interest rates for balance transfers rarely exceed ten percent. This rate will be for a limited time, but it will give you more time to make some progress toward paying off the balance.

The last thing you can do to pay less interest is to make a payment halfway through your billing cycle and then one on your due date. Interest is charged based on the daily balance that is on the card. So if you pay half of your minimum in the middle of the month, the average balance will be less and you will be charged less interest. This can help you pay off your balance a lot sooner.