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How to Get a Lower APR on Your Credit Card

Improving your credit score is one way to improve your odds of receiving a credit card with a lower interest rate.

Paying your credit card balance in full every month is the easiest way to stop incurring interest charges. However, if you do end up with debt, there are a few options for lowering your APR.

1. Open a credit card with an introductory 0% deal.

Transferring your credit balance to a card with an introductory 0% interest rate is one way to lower your interest rate. If your credit is strong enough to apply for one of these deals, you will be able to avoid paying interest for a long time.

However, there are a few things to bear in mind when transferring balances. The first is the cost of moving a balance; most credit cards charge a 3% fee for doing so. This will greatly reduce the amount you save overall.

Make sure you pay your bills on time. If you miss even one, your promotional offer may be revoked, and interest may begin to accrue immediately. You should also make every effort to pay off your balance before the 0% interest period expires. If you hold a balance above that point, interest will begin to accrue.

2. Look for a low-interest card

Credit cards with low recurring interest rates are a good choice for those who carry balances on a regular basis. They don't get as much coverage as cards with lucrative rewards or long 0% terms, but they are a good option for those who carry balances on a regular basis. Check out our roundup of the best low-interest credit cards, or contact a local bank or credit union for more details.

3. See what your issuer is willing to offer.

If you don't qualify for a 0% credit card, another option is to call your credit card issuer and respectfully address your APR. In order to keep your company, they will agree to lower your interest rate in some cases. Alternatively, they may be able to switch you to a commodity with a lower APR.

Your issuer might or may not be able to assist you in obtaining a lower interest rate, but it never hurts to inquire.

4. Improve your credit score.

Your credit score may be the most significant impediment to obtaining a credit card with a lower APR. Lenders typically take your FICO score into account when determining the terms of credit products, including your interest rate.

As a result, raising your credit score would go a long way toward lowering your credit card APR. It will help you get accepted for a card with a 0% introductory rate, negotiate a lower interest rate on a card you already have, or get a lower APR on a new card you're applying for.

Here are some helpful hints for improving your credit:

Always pay the bills on time. Get caught up on any bills you've fallen behind on as soon as possible.
Keep your credit card balances below 30% of your credit limit at all times during the month.
Just apply for credit that you really need.
Betweencredit card applications, wait at least six months.
Check your credit reports at AnnualCreditReport.com at least once a year.
If you notice a mistake, take immediate action to get it corrected.

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