4 tips on reducing interest rate on your credit card

Posted on Wednesday, December 27, 2017 - 10:34

Believe it or not, you can negotiate your way into getting a better interest rate on your credit card. An interest rate can have a huge effect on how much you will be paying on your card, and being able to reduce these numbers will make you a happier swiper. We have put together four tips on getting the best deal for you.

Cash in on the interest free period

When you take out a credit card you get an interest free period. This will be the opportune time to cash in on lowering your interest rate. Credit cost Australians $16 million in interest a day, with as much as $50.9 billion that is being owed. You could do this by paying off your debt every month. Couple this with new lifestyle changes in your budget will see you benefit in the long run. If you only use your credit card in times of need, than wants, you will reap the rewards. When purchasing wants try to use cash or a debit card. Being able to physically see all the money you have worked so hard for diminish is a quick motivator curbing unnecessary spending.

Don’t compromise, but compare

Sometimes we are pushed in financial situations that require immediate action. This could make you a bulging eye shopper who is looking for their next credit card pronto. This is a bad move. Even if the pressure is on, it’s advisable to speak to a lender and then compare. If your current lender is not giving you a competitive rate after you have asked them too, then you can threaten to leave. There are plenty of other institutions who want to sign up new customers with good interest rates. There are plenty of financial providers that offer top of the range comparisons, so you don’t have to worry. They compare the best deals for you in terms of interest rate and what is suitable to your budget. Want to get the best deal on your credit card? Contact an accredited financial lender today.

Learn the art of negotiating

According to a survey from Credit Cards.com, 78% of people who asked to have their interest rates reduced succeeded. A shocker is that only 1 in 5 attempted to ask. When it comes to your money there is no need to feel intimidated on how you protect and grow it. The basics of negotiating the best interest rate won’t need you to be a charismatic speaker who will have your lender eating out of the palm of your hand. Ok maybe this skill would help, but it will be pointless if you don’t have it backed up by research and reasons why it should be reduced. Be persistent and for the love of mini bagels don’t be rude.

It truly boils down to budget

You could get the best interest rate on your credit card, but if you are not good at managing your day to day finances it will be meaningless. Don’t underestimate the power of budgeting when it comes to saving. You will be shocked at just how much money you were throwing away with little purchases. You can start off by creating a list of what you consider to be needs and wants. Go through your bank statement and look at the purchases you could do without for the following month. One of the major expenses is food. Look at what you can cut out.

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