Finance

How to lower your credit card interest rates

Credit card interest rates drain you of your hard earned money. That’s why well-intended people fall behind on their payments and end up paying only the minimum amount which attracts high-interest rates and penalties. Hence, it’s important to be aware of the ways through which you can lower your interest rates. We have listed a few steps that can help you lower your Hdfc credit card interest rate and save money.

Check your credit card statements: First, collect all your credit card statements. It’s important to pay attention to your credit history, payment schedule, and other important details before calling your credit card company for a reduced rate. It’s advisable to know your current rate so that you can negotiate. From the statement, you can take the customer service number. Call the number and speak to the operator. The operator should be able to connect you with the correct person with whom you can negotiate the rate.

Ask to have the credit card interest rate lowered: Once you are connected with the representative, you can mention your good payment history, your loyalty to the company, or a high credit score to get a better interest rate. You should always be polite when asking for a rate change. Along with politeness, it’s also important to be persistent. In order to prevent you from transferring all of your debt to a lower interest credit card or a new lender, they will likely decrease your interest rate if you ask. However, please note that you may run into difficulties getting a reduced rate if you have a low credit score or a lot of outstanding debt.

Take information on qualifying for a lower interest rate: If you are unsuccessful in getting the low-interest rates, you should ask for more information. If it is because of late payments, ask the representative what you can do to get a lower interest rate in the future. You may have to wait a few more months and make payments on time in order to become eligible. You can also try to call again after a few weeks. You are more likely to get your rate lowered by calling consistently.

Make your payments on time and in full: Always make your payments on time and in full every month. They will be less likely to lower your interest rates if you fail to pay on time. This is why it’s important to consistently pay your bills on time and in full. If you are considered as a credit risk, you won’t qualify for a lower interest rate.

Here are the other tips that you might want to consider:

Don’t give up immediately if you don’t get a lower interest rate. Call your credit card company monthly and keep asking for a reduced rate. A good credit score can also help you get a better interest rate.

Always speak to the representative in a polite and respectful manner. Remember, the customer service representative is only doing his job, and you should treat him/ her with the utmost respect.

You can opt for a credit card balance transfer which means you can shift some of your credit card debt to a card with a lower rate.

Hence, if you follow all these steps you can lower your overall debt burden and save money. Try to negotiate with your card issuer for a lower rate and make sure to pay your dues on time every month.

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