(Translate Lavest Rente Kredittkort: lowest interest credit card)

With the average interest on a credit card of roughly 20 percent or more, it can be difficult to pay a balance when it’s carried over from one month to the next. Since rates are higher than has been seen in the past, the recommendation is to keep balances low so they can be paid in full when the bill comes due.

The best way to avoid a serious debt cycle if you must carry the balance and possibly reduce it is to negotiate with the issuer for a lower rate. Approaching a creditor can be intimidating but most are willing to work with valued customers to make the account more affordable to ensure the balance will be paid in full.

Alternatives can include debt consolidation which can be more effort and time intensive but can sometimes be more conducive to your circumstances. Whether choosing negotiations or debt consolidation, either result can be positive making the efforts worth the time offering a great deal less stress.

How To Determine the Best Interest Rate for a Credit Card

As interest rates continue to soar, what should a cardholder strive for when negotiating for a lower rate? The recommendation is to try for roughly “15 percent,” but this will require a good credit score. If your credit is better than good, excellent, it’s possible to be eligible for approximately “10 percent.”

With a less-than-favorable score or little to no profile, the best you’ll see is probably the average rate or higher. It is possible to establish or build credit and also to make improvements before applying in order to qualify for the lower rate.

Certain types of cards will come with higher interest, however, including secured cards, cashback, and travel rewards cards. The rule to follow is always consistent; the higher your credit score, the lower your rate.

That can not only mean you’ll pay less, but you could pay off your balances faster when you try to pay a higher amount than the minimum due. This is something you should always try to do if you can afford to. The added funds will go to the principal with a goal to pay the balance as quickly as possible.

If you have good credit, you have the possibility of a balance transfer card for those who are eligible. These offer 0 percent interest for a promotional timeframe of roughly 18 months or more. In this span, you have the chance to pay the entire balance with no fees or charges.

How To Negotiate the Best Interest Rate on a Credit Card

Before contacting the credit card company, you should be prepared with details from the account including your credit profile and any competitive offers available to you.

It’s helpful to have a predetermined “script” and take notes when speaking with the associate. It will direct the interaction toward a more positive outcome. Here are a few methods for preparing to negotiate a lower rate.

Assess your financial status

Before contacting the credit card company, figure out where your interest rate stands. These are usually on the bill near the top in a box. The payment history will be essential and can also be found on the history in previous statements with the payment amounts and whether these were on time.

The issuer will pay attention to these details when assessing for a negotiated lower rate. If there were extenuating circumstances, these need to be disclosed to the carrier. Things like divorce, job loss, or illness will be a consideration if missing payments are an issue.

The priority is emphasizing that this is no longer your situation but instead your objective is to be consistent and valued as a customer. The card company will still review creditworthiness including the profile and score. Any score above “740” is considered excellent.

A good score will range between “670 and 739.” Anything lower than these averages will maintain an interest rate of 20 percent or higher.

Make improvements to credit if needed

If your credit is less-than-favorable, making improvements will help before contacting the card company for a lower rate. Issuers will look at your credit utilization ratio which should fall below 30 percent for a positive outcome.

When trying to reduce your rate, avoiding applying for more credit. This can lower a score and increase your debt load. If you have a hefty balance on the card you want to negotiate with, paying a large chunk on the bill will look more favorable.

It’s also wise to sign on for autopay which will automatically give you an interest rate discount.

Compare cards

The credit card industry is fiercely competitive with banks and issuers vying for new cardholders. That allows the opportunity to look at offers with comparable cards that might have a better rate. If you find one, take note of the card details and the terms so you can relay this information to your carrier.

Most companies won’t want to lose a valued customer but instead will try to match or do better than the rate and terms offered.

Contact the card company

When contacting the card company, the associate helping you will need to know that your desire is to get a better rate. Sometimes the person answering the call is unable to help in this capacity, but you can request to speak with someone handling those calls.

If the process isn’t working, call back another time to see if you can work with another group of people until you have someone more knowledgeable. You should take their details including a name, title and a direct number if the call is disconnected.

All the points you want to touch on should be written down to ensure you don’t miss anything and notes should be taken from the conversation. When speaking, address the company and not “you” to be professional and create defensiveness with the person trying to help you.

Will Requesting a Lower Interest Rate Impact Your Credit Score

When requesting a decrease in your rate, the negotiation should have no bearing on your credit score or profile. The only time it will affect these is if the issuer needs to do a hard credit pull to see if you’re eligible. That can drop your credit score slightly temporarily.

If reducing the rate helps to pay the balance in full faster, the process will actually ultimately boost your credit.

What Are Alternatives If the Company Rejects Your Request

If the card company rejects the request, you can contact the issuer to find out the reason for the denial. Finding out why will allow you to make the necessary corrections or improvements and then try again after roughly six months.

If you have improved in that time span with consistent and on time payments, it will prove you to be financially responsible. That can mean the next time you call to negotiate, approval will be likely.

Try debt consolidation

Debt consolidation is an alternative for paying off higher interest debt with a lower interest card or loan. Those who have a few cards will find this choice makes sense since you’ll be ridding yourself of multiple bills in favor of one.

The possibilities for transferring balances for lower rates include a balance-transfer card, a personal loan and other loan options.

·  Personal loan

An unsecured loan used for consolidating debt will combine all the higher interest credit cards into a single fixed rate with set monthly installments for a designated term.

The rates can range from as low as “10 to a cap of 36 percent,” based on your creditworthiness. If your score is “670 or higher” a lower interest rate is possible.

· Balance transfer

When you transfer higher interest debt to a balance transfer card, the new card will have 0 percent APR for an introductory time of roughly 18 months. During this span you can pay down the principal with the objective of repaying the balance in full before the promotion ends.

Usually with this method, a score of approximately 670 and above is required to be eligible. The downside is there can be a transfer fee of as much as “5 percent of the balance.” Also, if the balance is not paid in full, the interest will go back to a standard rate at the end of the introductory period.

Final Thought

Those looking for the lowest interest credit card have the best opportunity to obtain one with an exceptional credit score. Please visit  https://kredittkortinfo.no/lav-rente/ for details on lower interest credit cards. Often it can be difficult to get these if it’s your first card and you have little to no history.

However, if you’ve already obtained a card, it’s possible to negotiate with the credit issuer to lower the rates you’re paying. It takes making sure you’re creditworthy and have been consistent with on-time payments.

Many card companies are willing to work with their cardholders as long as the client is in good standing. It can be intimidating to reach out but with the right approach, all the necessary details, and favorable stats, a positive outcome can be likely.