The interest rate on financial products can sometimes be what hurts a person’s wallet or seems to stretch the loan payback forever. If you have credit cards or want credit cards, then you are probably interested in knowing how to lower your interest rates. The following are five tips no matter where you are in the game:
1. Increase Your Credit Score
One way you can decrease your credit card interest rate is by lowering your credit score before you apply for the credit card. You can lower your credit score in several ways. Some of the most common ways to lower the score are cutting down inquiries, performing disputes and paying down your debt.
2. Do a Debt Consolidation
A debt consolidation can get your interest rates down significantly, and it will organize your debts for you. You can perform the consolidation in one of two ways. You can either apply for a high-limit credit card with a low interest rate, or you can contact a company that provides debt consolidation loans. Either way, you can eliminate the high interest rate that you might have right now.
3. Apply for Promotional Cards
Another trick that you can use to get a low interest rate is to apply for a promotional cards. promotional credit cards are cards that offer you a 0 percent interest rate for a limited amount of time. The time frame can last from 90 days to 18 months. You will not have to worry about an interest rate during that time, but you will have have to pay it once the promotional period ends. Hundreds of promotional cards are available for you to get, and you can have an answer within 60 seconds in most cases.
4. Use a Comparison Tool
A comparison tool is an excellent way for you to find a low-interest credit card without doing a tremendous amount of work or research. The site will show you up to 10 credit cards in a side-by-side or up-and-down fashion so that you can see other aspects of the cards aside from the interest rate. You can then pick the one that best fits your situation.
5. Try a Credit Union
Credit unions are notorious for having better products than traditional establishments do because of the way they operate. A credit union is likely to have an interest rate that is under 10 percent while a traditional card is likely to have one that is near 20 percent. You have to become a member before you can apply for the card, however.
Those are just a few tips for getting your interest rate down. Additional tips are available if you do not find what you need.