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5 Fool Proof Ways to Lower Your Interest Rate

June 20, 2017

 

If you have a credit card, one of the best practices is to ensure that you pay down your balance every month. However, many cardholders carry credit card debt from one month to another – which means they end up losing much of their hard-earned money to interest payments. One of the ways you can save on this front is by getting your interest rate lowered. While it may sound difficult, you’ll be surprised at how easy it is to achieve this goal, as long as you follow the steps listed below.

1. Boost Your Credit Score

Your credit score is the most important factor that determines your rate. Improving your score can go a long way to lowering your interest payments. The fastest way to boost your score is to pay down your debt. So do your best to reduce your credit card balances, mortgage and personal loans. Money management and debt reduction apps, such as IOU Debt Manager and Mint, can help you to handle your money wisely, and may also assist you in putting aside funds for loan repayments. This way, you can succeed in increasing your score and lowering your interest rates within a short period of time.

2. Utilize Balance Transfer Offers

To entice new customers, many card companies offer low introductory rates to applicants. By using these zero- or low-interest balance transfer offers, you can avoid paying interest on your credit card debt for a year or more. This may give you enough time to significantly reduce your debt to manageable proportions. However, be aware that such offers are valid only for a limited period of time, after which you may have to cough up much higher interest payments. 

3. Negotiate for a Lower Rate

It is easier and less expensive for banks to retain customers than it is for them to acquire new ones. Thus, to avoid losing your business, your card company may lower your rate, as long as you give them a valid reason to do so. For example, if you have been a good customer and have had an account with the institution for several years, you may request an improved deal by citing better offers from one of their competitors. Nevertheless, before you put forth your arguments, make sure you have your facts straight; customer representatives can easily verify the details by pulling up your history. In case the person you’re speaking to is not authorized to make this decision, ask to be transferred to a supervisor. Make sure that you’re polite and not rude or impatient.

4. Find Out What Other Consumers are Paying

It is important for you to do a little bit of homework and research as to what other customers are paying. This will make your case stronger when you negotiate. For example, it is not uncommon for rates to fluctuate over a period of two months, and depending on when you opened your account, you may be paying more than another consumer with a similar credit profile.

5. Switch to Another Institution

Sometimes, despite your best efforts, your current card company may be unwilling to lower your rate, even while another issuer is offering you a much better deal. In such cases, you shouldn’t hesitate to change your institution. Today, there are many banks that offer loans to individuals and businesses at 0% interest for a period of 6, 12, or even 18 months. These can be used for a variety of purposes, from funding a business to making a down payment for a home. Fund&Grow utilizes these offers through creative credit card financing to enable clients to get as much as $50,000 - $250,000 of unsecured credit. For a flat fee, our team not only guides customers, but also takes care of most of the paperwork. So if you’re interested in obtaining credit at 0%, call us at (800) 996-0270 and let’s talk about it.

I take tremendous pride in building positive and lasting relationships in my businesses and personal life. Every member of my team is committed to helping our clients get the maximum amount of funding possible and achieve their highest growth potential.

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