Home gambling commission 5 Ways to Lower Your Credit Card Interest Rates During Spike Inflation

5 Ways to Lower Your Credit Card Interest Rates During Spike Inflation

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The latest Consumer Price Index (CPI) report showed an overall price increase of 0.4% for all items, seasonally adjusted. It’s not the biggest jump we’ve seen, but the CPI, which shows the average price change for consumer goods and servicesincreased by 8.2% over the last 12 months.

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Meanwhile, interest rates also continue to climb, with the prime rate hitting 3.25% in September. Credit card companies usually set rates based on an amount plus the prime rate, with the amount depending on your credit score.

Despite rising interest rates, it is possible to get credit card companies to lower the monthly interest charges for you. How? Check out these tactics that have worked for many consumers over the years.

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Call and ask for a rate reduction

Credit card companies may increase your interest rate if you miss payments (this is called a penalty rate) or because of the increase in the prime rate. They might also increase your rate if they notice your credit score decreased. According to Experian, they must give you 45 days notice before increasing your rate for this reason.

However, credit card companies will rarely lower your rate without prompting, except in certain circumstances. (For example, if you pay the penalty rate, the credit card company must reduce this rate after six months of on-time payments.)

So you have to take action. If your credit score has gone up since you got the card and you’ve made all your payments on time, ask for an interest rate reduction.

Be prepared to make a strong case for lower interest rates. Report your credit score and payment history on time. You might get lucky the first time around.

Escalate the call

If the first person you talk to says no, ask for customer loyalty. The people in this office want to keep clients.

You may be able to negotiate with them by threatening to transfer your balance to a low interest card unless they lower your rate to stay.

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Still no results? Try again

Often, the lowering of your interest rate simply depends on the mood of the person on the other end of the line. It may be advantageous to wait a few days and call back at another time of the day. You are likely to have another person who may decide they can make the switch for you.

If you are actively working on improving your credit, wait for a billing cycle and then call again. Your credit score may have increased enough for your credit card company to justify an interest rate reduction.

Track your threats

If you still can’t get your interest rate lowered with your credit card company, it’s time to shop around for a better rate. First, look at the cards you already have and see if it’s worth doing a balance transfer. Remember to do the math and decide if the balance transfer fee makes the money you’ll save on interest worth it, which depends on how quickly you plan to pay off your balance at the rate. the lowest.

Your best bet is to look at a new card with an introductory APR of 0%. Then, make a plan to pay off your balance in full before your introductory rate expires. Don’t make the all-too-common mistake of reloading your old card that you just paid off.

Consider debt consolidation

Even with rising interest rates, a personal loan or home equity loan will often offer a lower interest rate than credit cards. You can even consolidate multiple credit card balances into one monthly payment. The downside is that you’ll get a lump sum payment each month, rather than smaller payments spread out over the month. You will need to budget cash flow carefully to ensure you can make your payment on time.

Conclusion: Even in times of inflation, there are ways to lower your credit card interest rates. With the holidays approaching, now is a good time to try and lower interest rates so you can pay off balances faster.

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