Securing a lower interest rate can help reduce your interest payments over time and may even help you pay back what you owe more quickly. Here are a few tips to help you get lower interest rate:

Do your research

It’s best to know what interest rate you could get if you opened a new credit card account today such as a loan or a line of credit. You can do this in a few different ways:

  • Search online to find out what rate your lender is providing customers who sign up for the credit card account you have. If it’s an introductory offer, find out how much the rate will increase to after the introductory rate is over, as well as timing for that increase.
  • Research the interest rates being offered on similar credit cards offered by other lenders. Also, be sure to check for annual fees and income requirements, reward programs or other benefits, cash advance terms or late payment policies, as these items will most likely affect the interest rate, fees and the overall costs of using the credit.
  • Look at your credit score and find out whether your credit score may be considered excellent or very good, as you may be able to use this information to negotiate a better interest rate.

Make the call

When you call your lender, be friendly, but firm. Use your research to highlight how much you could reduce your interest rate with another lender, and ask the customer service representative to match that interest rate and save you the hassle of switching lenders. Even if your lender doesn’t match another rate exactly, they may significantly lower your current interest rate. If the customer service representative agrees to make a change, make sure to ask for a written confirmation.

Shop around

You should not feel obligated to stay with a lender that isn’t willing to work with you. In the process of building your case for a lower interest rate, you’re also becoming a better-informed customer. If your current lender fails to compromise, you can always use what you’ve learned to find a better deal elsewhere.

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