Are you tired of paying high interest rates on your credit card? Believe it or not, there are several steps you can take to help get those interest rates lowered so you can keep more money in your pockets where it belongs. Improving Your Credit Rating One way to get yourself in the position to qualify for better interest rates is to simply improve your credit rating. Quite simply, the better your credit rating, the better your interest rate will be. In order to improve your credit rating, you need to be diligent about making payments on all of your current bills. In addition, you should take steps to pay down your debt, as carrying too much debt puts you in the higher risk category and can lower your overall credit rating. You should also be certain to use the credit you do have on a regular basis. That way, you can demonstrate that you are capable of using your credit cards and handling your loans in a responsible manner. Lowering Your Interest Rates After you have improved your credit rating, you have two options available to you for obtaining a credit card with a lower interest rate. If you do not currently have a credit card, you might choose to apply for a card with a lower interest rate. Since your credit rating has been improved, you should be able to qualify for a card with a better interest rate than you would have been able to previously receive. Of course, chances are that you already have a credit card and you are wanting to decrease the interest rate on that card. If you have worked hard to improve your credit rating or if you already have a good credit rating and you feel your interest rate is unfairly high, there is nothing wrong with calling the credit card company and negotiating a new rate. If you have been a customer in good standing, most credit card companies will gladly lower your interest rate if you simply ask. Of course, if you are already receiving an exceptional rate, you can not expect to get it lowered. If you have an excellent credit history, however, and your current interest rate is more than 10% on a card that is not a rewards credit card, you should be able to get the rate lowered to below 10%. In order to increase your chances of getting your interest rate lowered, you should come prepared with a solid argument for lowering the rate. For example, when calling the credit card company, be prepared to point out the following facts if they are true: • You have been a loyal customer for more than a year and have never made a late payment • You have an excellent credit history that warrants a decrease in your interest rate • You have other credit cards that offer a lower interest rate • You are willing to close your account if the interest rate is not lowered Be certain to be respectful when talking with the customer service representative and to be prepared to follow through with what you say. For example, do not threaten to close your account as a scare tactic. Rather, simply explain that the rate is higher than you are willing to pay and that you will be forced to take your business to a more reasonable credit card company if the interest rate cannot be lowered. If you are not getting anywhere with the customer service representative, do not be afraid to talk to a manager. Many times, a customer service representative will not have the authority to lower your interest rate. Talking with someone of greater authority, however, may be exactly what you need to do in order to get the rate you are looking for.
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Are you tired of paying high interest rates on your credit card? Believe it or not, there are several steps you can take to help get those interest rates lowered so you can keep more money in your pockets where it belongs.
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