How to Get a Low Credit Card Interest Rate - News-Credit-Mortgage-Coin

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Thursday, March 19, 2020

How to Get a Low Credit Card Interest Rate



The more you improve your credit rating, the better your chances of getting approved for the lowest rate of a card. Some factors that affect your credit card's APR are beyond your control, e.g. For example, the amount of time you have dealt with loans.

Even if you are new to lending or rebuilding your score, you can take steps to ensure a lower APR.



For example: Pay your bills on time. The most important factor affecting your creditworthiness and ability to earn a lower interest rate is your track record of making payments on time. Lenders are more likely to trust you with a competitive annual rate - and other positive conditions, such as B. a high credit limit - if you have been paying your bills on time for a long time.
Keep your balance low. Lenders also want to see that you are responsible with your credit and not overloaded. As a result, the credit scores take into account the amount of credit you use compared to the amount you received. This is known as the degree of credit utilization. The lower your ratio, the better. For example, personal finance experts often recommend that you keep your balance well below 30% of your total credit limit.

Build up a long and varied credit history. Lenders also want to see that you have successfully used credit for a long time and have experience with various types of loans, including revolving loans and installment loans. As a result, credit scores like the FICO Score and VantageScore take into account the average length of your credit history and the types of credit you've processed (what is known as your credit mix). To keep your credit standing for as long as possible, keep using your oldest credit card so your lender doesn't close it.

Call your lender. If you have successfully owned a credit card for a long time, you may be able to convince your lender to lower your interest rate - especially if you have excellent creditworthiness. Contact your lender and ask if they are willing to negotiate a lower APR.

Monitor your credit report. Check your credit reports regularly to ensure that you are being valued accurately. The last thing you want is for a mistake or an unauthorized account to affect your credit rating. You have the right to check your credit reports from any major credit bureau (Equifax, Experian and TransUnion) once a year via AnnualCreditReport.com for free.


Kelly Dilworth is a personal finance professional and former employee at Credit Cards, She started her career as a journalist at The Atlantic in 2007 and then made a detour into nonfiction publishing for several years. She returned to journalism in 2010 and has written about everything since then, from 20-year-olds with Hercules credit scores to Federal Reserve monetary policy decisions.

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