If you want to get a better rate on your credit card the best thing that you can always do is just
to pay off that statement balance in full every single month because that's going to bring your
interest rate down to zero from whatever it was at and that's always the best case scenario but
if you can't do that i've got some tips that can help you lower your interest rate without paying
off that credit card balance in full so watch this video hopefully it can help you guys out now
the first thing you need to understand is that most credit cards use a variable interest rate
meaning that it can vary so for instance your credit card might be 11 to 22 percent
and they'll never actually tell you where you're gonna fall into that range but the first tip that
i can give you to keep you on the lower end of that range is to make sure that you always pay
off your credit card bill on time that's the big thing here even if you make the minimum payment
just pay it off on time and then also make sure that you're keeping up with your other bills
as well because as long as your credit score is healthy and growing then typically you're going
to end up in that lower tier which is exactly what you want with your credit card because if it is 11
to 22 you'd much rather prefer to be an 11 rather than 22 just because your credit score is more
risky to them so just make sure that you keep up with your bills keep your credit score healthy
and of course when it comes to your credit card don't make any late payments on that specifically
because if you do they can actually bump you into a penalty apr which is generally higher than even
the highest rate so definitely make sure that you're making those minimum payments at least
on time and then you are good to go because at the end of the day if you don't show any late payments
and you've got a pretty healthy credit score then generally speaking you're less risk to the
credit card company and therefore you're going to be on the lower tier of their interest rate
if you do happen to be paying interest now the next tip that i have for you guys if you want to
lower your interest rate on your credit card is my number one tip because everybody can do this
all you have to do is literally just call up the credit card company and ask them for a lower rate
because a lot of the time they want to keep your business because they want to stay competitive
and they can actually lock you in at a better rate for a short period of time maybe six to 12 months
but it never hurts to ask now the phone number the easiest way to find it is just to check the
back of your credit card the phone number's always going to be there call that number get the right
representative and ask them because it doesn't hurt and everybody can always try to get a better
interest rate because it's always worth trying and it's like they always say the squeaky wheel
gets the grease so just be the squeaky wheel ask because it's never going to hurt and everybody
can at least try to get a better rate by talking to the right person now the next thing you can do
to lower your interest rate if you're willing to get a new credit card is to look for zero percent
balanced transfer credit cards because these ones typically will have a zero percent apr for about
a year sometimes i've even seen two years so what you can do is you can take the balance from your
previous credit card and you can move that into the new credit card at zero percent interest
now keep in mind a lot of them are going to have a balanced transfer fee that's different
than the zero percent apr now the transfer fee is typically going to be about three to five percent
so if you had a thousand dollar balance you're going to have to pay about 30 to 50 dollars just
to make that transaction now it doesn't sound like much when it's only a thousand bucks but if it's
ten thousand that would be three hundred to five hundred dollars instantly that you're losing just
by making that balance transfer so it's not always worth it when you run the numbers but if you have
a low balance it might be something to consider just be wise here if you are looking into new
credit cards because the last thing you want to do is just to open up a new credit card only to get
back into the exact same problems that you were in and then you'll just end up with a whole bunch of
credit cards and a big mess that you don't need to be in so just be wise and only do this as a last
resort if the math is working out and you really do want to get another credit card and eventually
maybe cancel the old one and just remember the best case here is that you can pay zero percent
interest on your credit cards as long as you pay off that statement balance in full every single
month because as long as you just focus on the statement balance get it paid off by the due date
then you are paying zero percent interest and that is the best case scenario for any credit card that
you have now if you do happen to be in the market for a new credit card like for instance you are
looking for one with a good balance transfer offer then definitely check out creditcards.com i've got
an affiliate link in the description below if you guys are interested because they do have a
large selection of different categories like for instance if you're looking for balance transfer
cash back travel they've got a lot of different categories of competitive credit cards
and competitive introductory offers so definitely check them out if you have an interest and if you
just found this channel i'm jason with honest finance and i make a lot of videos on different
topics that will give your life and your finances more value so feel free to subscribe if you guys
are into these types of videos but thank you for watching this one have a great day