When you don’t make your payment in full, high interest rates increase the monthly payment due on your credit card the next month. In fact, higher interest rates can reduce your spending power by creating higher monthly payments. Getting a lower interest rate is possible, particularly if you use the following strategies to reduce the rate attached to your credit card.

Improve Your Credit Score before Applying

Improving your credit score may be easier than you think. In most cases, you can increase your score simply by following these strategies:

• Always make your payments on time 

• Pay off more than the minimum amount due 

• Avoid getting new credit accounts 

• Check your credit history and remove any inaccurate information on it 

Shop Around

If you want a competitive rate for your credit card interest, you may need to look at other companies. Before you finalize the switch, make sure to call the number on the back of your credit card and ask if they can lower your rate. Be sure to inform the company representative that you have found a lower interest rate elsewhere. If the answer is no, start thinking about which competitor will give you the best deal.

Call and Ask

Even if you intend to pay your bill in full, you may encounter times when this is impossible. Securing a lower interest rate for your account before it impacts your monthly expenditures might be a good idea. Call your credit card issuer and ask if you can have a lower interest rate for your account. It doesn’t take much time, and the results might be well worth the phone call.

Having a credit card gives you leverage to purchase items that you want now and pay for them later. Even so, it is important to obtain as low an interest rate as possible to increase your spending potential. Fortunately, several options are available to those consumers looking to negotiate lower rates for their credit card interest. If your interest is higher than you would like, now could be a good time to try to access a better rate.

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