If you take some time to scroll through the Internet, you’ll find lots of people claiming to have unique “credit card hacks” that can help you build your credit fast. Unfortunately, a lot of these “hacks” are completely false, and can even hurt you in the long run.
However, there’s one that we hear about pretty often, so much so that we wanted to share. The hack in question is asking your credit card issuer for a lower interest rate. Come dive in with us as we explore why this is a good idea for anyone looking to boost their credit.
Why Having Lower Interest Rates Is Helpful
Why It’s a Good Idea To Ask For Lower Interest Rates
Before asking your credit card issuer for a lower interest rate, you’ll want to do a bit of homework. Make sure that you spend time researching interest rates on credit cards from other card issuers. In doing so, you’ll be able to see if your issuer will be able to match their lower numbers.
It’s important to let your credit card issuer know why you deserve a lower interest rate. Describe your financial situation and show them that it’s improved since you first opened the credit card account.
If you visit creditcard.com, you’ll find an extremely helpful script that you can use to negotiate a lower interest rate. While lowering your interest rate won’t impact your credit score directly, it can be a huge win for your interest charges each month. In turn, you’ll be able to pay off your debt much faster.
The more debt you can pay off, the better off your utilization ratio will be, leading you to a better credit score overall!
Note that this hack is not a guarantee. As it goes, many people ask for lower interest rates and get denied by their credit card issuers. If this happens to you, don’t let it get you down. It won’t hurt you in any way and your interest rates will remain the same. You can always ask again in six months if your financial situation has improved.
Final Thoughts
Negotiating lower interest rates could save you hundreds, if not thousands of dollars in the long run. If it makes you feel better, three-quarters of consumers that attempt to negotiate lower interest rates succeed in doing so.
Of course, if you’re looking to potentially boost your credit score fast, you might consider using authorized user tradelines. By attaching yourself as an authorized user to another account that is in good standing, you can boost your score and get it to where you need it to be to apply for that next loan or lower your interest rates!
If you are in the market for older, high-quality tradelines to help your credit score, Personal Tradelines can help you. To get an assessment on the tradelines that can best help you, make sure to get in contact with us here at Personal Tradelines. We look forward to helping you reach your financial goals as a creditworthy consumer.
