HOW TO GET LOWER CREDIT CARD INTEREST RATES
Introduction
Credit card interest is defined as the prime way a credit card issuer generates income/revenue. Card issuers are mainly banks that issue their customers with a card that is varied for various uses like to make payments or borrow cash from the bank. The banks lend the card holder money and then charge credit card interest over the time the money is borrowed. Oftenly, banks suffer a lot of losses when the card holder fails to pay the money as agreed. Therefore it is important for the banks to take precaution before issuing any credit cards through doing a proper check of the credit bureau report about the person in question and also do interviews on the applicant's finances. Most banks do the credit card interest rates calculations depending on the information gathered about the card holder. However, if a person has been awarded high credit card interest rates and does not agree with the bank's decision, the following steps can be useful to assist in reducing the credit card interest rates.
Step 1
Find out how much interest rate is allocated to you
This would be very popssible through getting your credit card statement. The annalized percentage rate should be found at the top or bottom of the credit card statement. Incase you fail to find the annualized percentage rate, call your credit card provider and enquire on the same.
Step 2
Shop for a lower interest rate
It is very important to do an online search of the credit card companies of which you are a member and do a comparison of the credit card interest rate you are paying and their offers for new clients. This is crucial information that a person needs to have before demanding for a lower credit card interest rate.
Step 3
Compare your current credit card interest rates with the national averages
Thanks to technology, it is very easy and convenient to get the latest credit card interest rates and the national averages through the internet at websites like cardtrak.com. This is usually presented inform of a chart that clearly shows the different credit card interest rates offered by different credit card providers to different types of customers.
Step 4
Define the credit card interest rate you ought to be paying depending on your credit score
Before asking for a lower credit card interest rate from your credit card provider, it is important to define the credit card interest rate you deserve as stated by your credit worthiness. It is possible to get a free trial that will state your credit score on websites like www.finishrich.com.
Step 5
Call your credit card provider
This is the most crucial step towards attain low credit card interest rates. Use the knowledge attained from the above steps to prove that you do not deserve the current credit card interest rate allocated to you. If the customer care agent you speak to does not help you, insist on talking to the supervisor or a person who can help you. If you still do not get the results you want, make a point of appearing at the credit card provider's office in person. Explain your current credit card interest rate and your credit score then demand to know why your you credit card interest rates are higher than they should be.
Conditions for attaining a lower credit card interest rate
- Have a record of good credit card rating: this is mainly defined by timely payment notations and a good credit card score.
- Have a low debt to income ratio and no out standing balance on your card.
- Have a reputable and execellent payment record with the specific credit card provider.
- Avoid the habit of sending the minimum required amount monthly.
- The credit card in question should not be secured or marked to those who have bad credit history.
