The the easy way avoid getting hit with credit card interest fees is to pay balance entirely each month. But when you end up carrying debt, there are a few ways you should consider lowering your APR.
1. Open credit cards with an introductory 0% deal.
One way to bring down the interest rate in your credit balance is to transfer it to a card with?an introductory 0% promotion. If your credit is a good example to be eligible for a one of these simple offers, you could wind up dodging finance charges for some time.
But keep in mind that there are some items to look out for with balance transfer promotions. The very first is fees; most charge cards charge a 3% fee for transferring an account balance. This might significantly reduce the overall amount you’re saving.
Nerd tip: Check out our tool to determine the true cost of your balance transfer.
Be mindful of making your instalments on time. Missing even you could cause your introductory deal to be canceled, and interest may begin accruing immediately. Also, you should help make your best effort to repay balance before the 0% period ends. Again, interest will eventually start accumulating if you carry a balance beyond that time.
2. See what your issuer is willing to provide.
Calling your charge card issuer to politely discuss your APR is another alternative if you cannot be eligible for a a 0% credit card. In some instances, they might accept decrease your rate of interest to keep your business. Or, they could be willing to move you to another product having a lower APR.
Your issuer might be able to assist you in finding a lesser interest rate, however it certainly never hurts to inquire about.
3. Improve your credit score.
You credit score might be the biggest obstacle to getting a lower APR on the credit card. Usually, lenders consider?your FICO score when?deciding the terms of credit products -?as well as your interest rate.
So?improving your credit score will go quite a distance toward helping you qualify for a lower APR on charge cards. It will put you in a much better position to obtain approved for a card that’s offering a 0% deal, negotiate a lower interest rate on the card you have, or get a lower APR on the new card you’re applying for.
Here are the Nerds’ some tips for getting your credit into good shape:
- Pay your debts on time, each time. Get current on bills you’re behind on once you can.
- Keep the balances on all your cards below 30% of your credit limits at all times throughout the month.
- Only make an application for credit you actually need.
- Put at least 6 months between charge card applications.
- Check your credit history at least once each year at AnnualCreditReport.com. Should you spot a mistake, take steps to be corrected as quickly as possible.
The bottom line
There are several techniques for?lowering the APR in your charge cards, so you shouldn’t feel tied to an overwhelming rate. Consider the?information above when choosing the best strategy?for you personally.
Lindsay Konsko is really a staff writer covering charge cards and consumer credit for NerdWallet. Follow her on Twitter @lkonsko as well as on Google+.