4 Effective Ways to Reduce Your Credit Card Interest Rate

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Credit Card Interest Rate
Image by Manuel Alejandro Leon from Pixabay

If you are a credit card user, you must have a decent knowledge of the correct management techniques. In most of the cases, you might face some problems related to the credit card that is actually threatening. One such issue is the increased rate of interest in your credit card.

There are several reasons why the rate of interest of your online credit card can increase. Sometimes, it totally depends on the issuer, but in other instances, your mistakes might be the main reason. Here, the leading causes for the elevation of the credit card interest rates are given. You can also find four most effective ways to reduce it and minimize your stress.

Reasons for Rate of Interest Increase

For a credit card, the interest rates can increase due to the change in the index rate. The second reason can be considered as your poor credit score. If you have a poor credit score for a prolonged period, there are high chances that the interest rates will gradually go up. Issuer’s review can also be the reason why the rate of interest can increase for a credit card.

In the case of a few credit cards, the APR rates are minimized for some months during the initiation. Once this period ends, the user experiences a sudden and sharp increase in the rate of interest. If your card provides 0% interest rates for the first three months, it will charge you the normal percentage rates from the fourth month onwards. A miss of balance payment at the right time can also upraise the interest rate of the card.

Leading Ways to Reduce the Interest Rates

As a smart user of credit cards, you can take the following ways to avoid tensions related to the elevating interest rates of the credit card:

Advance Balance Payments

Advance balanced payment is the best way you can control your interest rates to increase all of a sudden. Try to check the balance of your credit card early and pay it at least a week before the actual payment date. The amount of average payment can be decently low if you deliver the balance earlier. You can also choose to provide a balance for two to three times a month. This can result in the improvement of the credit score as well as maintaining a proper balance on the rate of interest.

Transferring Balance

Many credit cards give the opportunity to the users to transfer the balance. You can use it just for a single time. On having two or more credit cards, you can move some balance from a particular credit card to the other. This can help you to avoid the situation of interest rate elevation in one specific credit card. If there is any discount or waive on the balance transfer system, you can use it. Nevertheless, transferring balance can naturally deliver a negative impact on the credit score. In such a situation, you can implement other strategies to improve your credit score.

Delay any Huge Purchases

Many users have a tendency to buy expensive things via their credit cards. If you see a sudden or a continuous elevation of the interest rate, it is better not to buy any luxurious items from the credit cards. It is best to buy these items after the projected date of balance delivery. You can thus get a lot of time to accumulate money and deliver the outstanding balance in the following month.

Take the EMI facility

The EMI facility can help you to reduce the elevated rate of interest. You can easily convert the total outstanding balance of the credit card into EMIs. However, you should mind checking if your credit card issuer is ready to deliver you this opportunity.

The EMI setup can help you in two ways. First, you will be able to clear all credit-related debts more comfortably. Finally, the rate of EMI can be dramatically less than the percentage of the interest rate.

So, these are the four ways how you can ensure that the interest rates of your credit card remain in the correct balance. There is a very less chance of increasing if there are no negative activities from the issuer’s side. For this reason, it is crucial to purchase a credit card from the leading issuer. As many banks now face keen competition in the market, they tend to deliver the ultimate comfort of using the credit card.

You can always talk with the professionals via the customer care helpline. They can suggest you about the best strategies to keep your interest rates under control. Small purchases, occasionally, can help you to keep your credit card active. Never be panicked if the problems related to credit cards happen. In most of the cases, it diminishes by time.


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24 shares, 67 points
Nikitha Dey

An entertainment enthusiast and currently associated with YuppTV who loves to surf the internet, watch movies, cricket, read interesting topics and share them with the world. I’m a foodie, a tech lover and a fashion fanatic who genuinely loves to keep myself updated about the latest trends.