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Can I ask my credit card company for no interest

You’re more likely to get help if you speak in a respectful manner when negotiating credit card interest rates. But Jacob and Sullivan say not to discount tried-and-true money management strategies before declaring bankruptcy or paying a debt settlement company. The process of getting your credit card rate lowered only involves a few steps, shouldn’t take more than 15 to 20 minutes, and doesn’t require any advanced negotiating skills. [newline]It just takes getting the right information in your hands and the right person on the phone. Consider a credit card with a $10,000 balance that’s charging 25% annually. All else being equal, that credit card balance will cost you $2,500 in interest over the coming year.

When you find a card similar to yours that has a better rate, pay attention to the company, the card’s name and its terms. Have this information available to you when you reach out to the bank. Credit unions tend to offer the best credit card rates, some as low as 6% for their most creditworthy members. On the other end of the spectrum, store credit cards, secured credit cards, travel rewards and cash-back credit cards tend to have higher interest rates.

Even if you can’t pay off the entire balance, making more than the minimum payment can still help you reduce how much interest you pay. A balance transfer lets you move debt from one credit card to another. But how it works is up to individual issuers, and you may not be able to transfer balances between two cards from the same issuer. Capital One, for example, has a credit card comparison tool that helps you see how different Capital One cards compare to one another. And with pre-approval from Capital One, you can find out if you’re eligible for some cards before you even apply. It’s quick and won’t hurt your credit scores since it only requires a soft credit inquiry.

The Best Advice: Avoid Credit Card Interest Altogether

With interest rates on the rise, what should you be aiming for is anything below 14% APR, and you’ll need a good credit score to get it. [newline]If you have exceptional credit, you might qualify for something at 10% or even better. If your credit is bad, the best you’re likely to get will be 20% or even much higher. Paying down a credit card balance has always been difficult, and it’s never been harder. Cancelling your credit card may seem the obvious next step if you’ve managed to pay off your balance in full. But there are several factors you need to consider before deciding whether to get rid of your card, including the effect it could have on your credit history. Once you’ve found someone at the credit card company who is willing to negotiate, make sure you get the terms of the deal in writing.

The low “introductory” rates are also temporary, and not paying off the balance every month or paying just the minimum can lead to a higher interest rate. If you can qualify and have a plan to pay the balance off before the introductory rate expires, it can be a good option for credit card debt consolidation or refinancing. The best balance transfer credit cards typically offer a 0% intro APR on balance transfers for a limited period, usually from 12 to 18 months. As long as you can pay off the balance before the introductory period ends, this option might even beat negotiating a better rate on your current card. Keep in mind that you’ll need good credit to qualify for most balance transfer credit cards.Here are some of our experts’ top-rated balance transfer cards. If you maintain good credit and a clean payment history you can often be granted a lower interest rate. Continue to make payments on time, reduce outstanding debt and make a plan to try again in three to six months.

Situation 3: You Have A High Interest Credit Card And Are Always Carrying A Balance Month To Month

These offers can save you a lot of money on interest, but weigh the pros and cons to be sure a balance transfer is worth it for you. You can find your credit card interest rate on your monthly statement, and you can use the interest rate on other credit cards as leverage for negotiation. If you’ve received any credit card offers in the mail recently, take a look at those interest rates. Sometimes balance transfers have a promotional rate, while purchases receive the regular APR.

  • It’s impossible to say exactly how many points you’ll lose since each person’s credit profile is different.
  • Once you’ve paid it off, use the same strategy for paying off the card with the next highest rate.
  • When you ask for a lower rate, it’s important to have a general idea of what you want to say, so we can’t emphasize enough how important it is to be prepared.
  • This gives you enough time to pay so you can avoid finance or other charges.

The issuer must tell you the name and address of who gets these reports and, when your dispute is resolved, they must promptly report that to everyone who got a report. That said, it’s also an opportunity for a second chance, financially speaking. Having a bankruptcy on your credit history can impact your ability to get a car, rent a home, and even get a job, but it doesn’t stay on your credit forever. With financial diligence, your credit should start to improve after a few years, and the bankruptcy will fall off your credit report completely after seven to 10 years. A higher purchase APR (annual percentage rate) means you will owe more in interest if you carry a balance, while a lower purchase APR means you will owe less.

One way is to keep your credit utilization rate — the ratio of account balance versus the credit limit — at 30% or less. For example, a card with a $1,000 limit would have a balance of $300 or lower. You can ask your credit card company to freeze the interest on your credit card, but there is no legal obligation for it to agree. If you have good credit, you can remind the representative of that and point to your history of being a good customer (by regularly using your card and paying your bills on time). Credit cards are great tools that can help you leverage your cash flow, since you can make purchases now and pay later.

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These include the Lending Standards Board’s Lending Code and the Credit Services Association’s Code of Practice. Consumers who have temporary financial challenges should consider asking their credit card company if they have a hardship program. Now you’re ready to get your credit card and call the customer service number listed on the back.