In case you haven’t realized already, credit cards are expensive. The privilege of using a credit card is not free but comes at the cost of high-interest rates. It’s no secret that the country’s credit card debt has been growing at an alarming rate. Yet, this fact hasn’t stopped anyone from using credit cards. The truth is that credit cards have become an indispensable part of everyone’s wallet. But doesn’t mean you soon find yourself in a mountain of credit card debt, or pay any more interest than you have to. In fact, the interest rate you pay on your credit card makes all the difference. And that is why it’s important to look for ways to get low-interest rates on your card.
How to Get Low-Interest Rates on Credit Cards
Credit cards almost always come with high-interest rates. But surprisingly, there are a few simple ways in which you can reduce the interest you pay on these credit cards:
- Negotiation- You will be amazed to find that most credit card companies are willing to negotiate interest rates with customers. If you have a good payment history without any missed or delayed payments, your credit card company may be willing to lower the interest rate. However, if you’re not successful in your first attempt, don’t give up. Be persistent. Understand the reason you were denied a lower rate. If it’s because you have a blemished payment/credit history, try to work on it. Make full payments regularly and improve your credit score. Contact the company again after a few months and try to negotiate once again.
- Credit Card Refinance- Also known as balance transfer, credit card refinance involves transferring your credit card balance to another card. The new card typically comes with a much lower interest rate. The main goal of credit card refinance is to save money on interest. Not all credit cards are the same. Some of them provide an introductory offer with very low-interest rates or even 0% interest for 12 to 18 months. This gives you enough time to pay off your credit card balance and also saves you a significant amount of money.
- Debt Consolidation Loans- This option works just like Credit Card Refinance. But the difference, in this case, is that you take out a loan to pay off all your existing debts. The main advantage of debt consolidation loans is that they come with low-interest rates. In addition to this, they help you combine all your debts into one single loan, making it easier to manage and repay. This, in turn, reduces stress and gives you the opportunity to improve your credit score.
Also Read: How Credit Card Refinancing is Different from Debt Consolidation
Credit card debts can be overwhelming. They tend to take a toll on your financial well-being. But you can avoid this by opting for debt consolidation loans or credit card refinancing. These alternatives help you get low-interest rates, thereby making repayment much easier.