How to Get a Lower Interest Rate on a Credit Card

'How to get a lower interest rate on a credit card', and 'how to lower credit card interest rates', are two questions that can have multiple answers. There are some solutions that can be used to lower the rate of interest on the credit card. 'Interest' or the cost of credit that is incurred, as a result of borrowing, can be calculated before the credit card is taken. Or can be managed after the credit card has been already taken. 'Interest' rate on a credit card, basically includes all the credit card processing costs, APR's (Annual percentage rate), late fees, membership fees and service charges. The following article is divided into two parts, the first one has the information about low-interest credit cards and the second one has the small steps that can be taken to have a lower rate of interest while using the credit card.

Getting a Lower Interest Rate on a Credit Card

Well, in theory, the secret, or rather not so secret, way to get a lower interest rate is to have a good credit report. However, apart from a good credit report, there are several other options that one can avail. A low-interest credit card is given to a select class of working people such as military servicemen or people who have some disability. Companies such as MasterCard and VISA also offer some special concession to people who travel abroad often, or have low-interest business credit cards. There are also several other ways to reduce credit card debt that you might incur. For example, check up on the different facilities of differential APR's. Such a facility is a unique, when a credit card holder spends upon items of necessity such as food and clothing, the APR that is charged is small and negligible. You can also avail bankruptcy credit cards or student credit cards as the APR and fees of such cards is less and the credit limit is pretty good. Thus, the interest rate on a credit card also depends upon the purpose for which you use it. When you have a good credit report you also have the advantage of negotiating credit card interest rates with the company. Another option to have a low-interest credit card is to have a secured credit card. The big plus point is that this card has a better credit limit and lesser APRs on some purchases.

How to Lower Credit Card Interest Rate

Now that you have taken the credit card, you will have to take some precautions, to make sure that you keep the interest rate on a credit card, APR and other service charges to the minimum. In order to hunt for ways to cut credit card debt, you will have to review the credit card agreement. This agreement has different clauses such as introductory APR, which is by default 0% for first 6 months in most cases. Then you will have an APR that is applicable for purchases, this amount is usually variable. Credit card companies such as Citigroup, VISA, MasterCard state the upper and lower limits of the APR, for example, 9.22% to 16.50%. Apart from the APR, a discount is assured that can go as high as 10% to 15%, if you purchase from some specified brand stores. Some credit cards also have APR's that have different rates as per purchases. If you purchase anything that relates to basic necessities, then you will have different APR, however if you purchase anything that is to do with luxury, then you will have a higher APR. Moreover, you will have an APR for balance transfers, one APR for cash advances, another one for overdraft facilities. The key is to read the agreement and all possible details about the card on the credit card company's website.

Now what you need to watch out for, is the dates before which you will have to pay off the said bill. If you are late in planning your repayment of the bill, a certain fee calculated as per rate of a specified rate of interest and additional charges of processing is levied. A sincere and regular repayment can get a great credit history, as well as many further credit card offers and plans. The big plus point is that purchasing a well planned out credit card plan can be very cheap. Apart from that, spending the same wisely is also profitable.