Interest rates are among the most important features that characterize credit cards. They are practically the charge that the borrowers have to pay for using the money they need, but do not possess at the time of the purchase. Most cards come with a grace period, which means that the borrower is given about a month to settle the credit card balance. In other words, if you make a purchase using your credit card today, you will be charged an interest only if you fail to pay back the money borrowed by the end of the month.
The interests you are required to pay from one card to the other and as interest rates show a decreasing tendency, chances are that a credit line you obtain today will come with more favorable interest rates than an older card. However, there is no reason why you should not try to get better interest rates – here is how.
Compare Your Interest Rates to the National Average
Check the Annual Percentage Rates (APR) stipulated in your current agreements and go online to compare them to the national average rates. This way you can find out where you are standing and you will know where to aim.
Shop for Low Interest or 0% Interest Credit Cards
You can try to obtain a credit card that comes with very low or no interest for at least a certain period and use the money in that credit line to pay off more expensive debts. You can also choose to get a balance transfer card – this type of credit cards have been invented exactly for the purpose of helping borrowers settle more costly debts and they come with very favorable conditions.
Negotiate Interest Rates with Your Current Card Provider
If you prefer to stay with your current card provider, you can try to negotiate better conditions for your existing card. Collect card offers from other providers, get a copy of your last credit card statement and determine a solution you will be happy with, then call your provider and present your point of view. If your card provider sees that you are a reliable borrower and you have a sound repayment plan, they may be willing to renegotiate the terms and conditions of your credit.
Credit cards and interest rates come in all shapes and sizes – if you consider the cards you own too expensive, try one of the above solutions, and you will see that lower interest rates will make your finances much easier to manage.