by Cody Hodge

Created on: February 10, 2010

So you want to lower your credit card interest rates? I don't blame you because quite simply it can be easier to save money by simply lowering your interest rate. If you have a 100 dollar purchase, and they add 20 percent interest on that purchase, you have to pay 120 dollars now. If you have to pay 9 percent interest you simply have to pay 109 dollars. That's a savings of 11 dollars on your bill simply because you have a lower interest rate.

Now it should be pointed out that if you pay your balance off by the end of the month that there are no finance charges or interest rates to pay. However, how many of us actually pay off the end balance when the money is actually due? The best way to save money is to then lower the amount of interest you have due. How do you actually go about that? The easiest way is to shop around for the best rate before you sign up!

Just like you save money by having an auto loan pre-approved, you should have a credit card from a bank or credit union before you make a big purchase. If you go to the credit union and get a Visa for a 9 percent interest rate, you are saving yourself a lot of money versus having to possibly pay 18 percent interest or higher on a store credit card. I have had this happen to me before and was glad that I had my own card versus having to sign up for a store card.

Another good way to save money on your interest rate is to simply ask to refinance your credit cards. If you are a good borrower with a solid credit history it makes sense that a lender would allow you to have  lower rate. Just like anything else, the credit card companies want you to keep borrowing their money to make more money for themselves. It would behoove them to keep a good customer happy and spending money on that card.

If you can at all, simply pay off the balance of a high interest credit card and then don't use it while applying for a lower interest rate on your next card. Remember that you can usually score lower rates by having a good history, or some cards will allow you deduct interest if you have made a certain amount of payments in a row. A card like that could really help you out in the long run if you are good at making the payments.

Interest on your credit cards is really what keeps you paying the same bill over and over again. If you can avoid having a high balance or a high interest rate you should do that at all costs. Don't be too scared to shop around or get another card if it has a lower interest rate as long as you can pay off your old card or cards first.

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