Credit cards can be of great advantage. Very often it is convenient than cash. You buy clothes, jewellery of your choice, go for holidays and pay later. With a credit card it is very easy to track the expenses and to keep a proof. They are very useful during emergency and sometimes they are the only way you can pay. But side by side it encourages impulsive buying. They tend to wean your financial status as they come with very high rate of interest. You have to pay back the credit within a stipulated period or else the interest goes on mounting. Burden of exorbitant rate of interest is the biggest drawback of credit cards.
So you have to lower your APR’s (Annual percentage rate).It is the simple interest rate for the whole year. Credit card companies make their business by the interest you pay for failing to pay within date. The higher the interest goes on increasing, higher is their profit. So before accepting a credit card you should very well know the terms and conditions of the credit card. A burden of debt can take extract all your savings away.
How to lower your APR
A small cut in APR can bring down the annual interest rate. Interest rates of credit cards are negotiable. To lower your APR’s you have to contact the customer care of your issuing bank. Talking to them can save 1000s of dollars of your hard earned money. If you are a long time card holder, always pay on time, and have a high credit score, it is very likely that the customer care representative would lower your interest rate. Also find out if the interest available is with immediate effect or later. Sometimes lowering of interest is just temporary for promotional interest only.
Check all hidden clause
Once you get your interest rate lowered verbally, try to get it in writing to have the valid proof. A verbal commitment means nothing. Sometimes lowering of interest rates come with a lot of clauses which can increase your interest rate much higher than the original rate. Always check for the hidden clauses. So lower your APR’s prudently and be aware of all the clauses attached with it. Once you have lowered your APR, be careful in spending money. The money you save should not go for other purchases. You should be free from the debt you already are in.
As credit card companies make huge profit out of interest received from unpaid balances. So they would not like to lose a customer. So bargain to lower your APR’s. Also be aware of the interest rates attached to credit cards of other banks. This would help you to negotiate your terms. Try to talk to the right person in non-aggressive way explaining your view point. This just requires a little extra effort and sometime of yours. If you fail in your effort, there is nothing to lose. But the extra effort might saves your hard earned money and minimise the burden of debt considerably.