How to Decrease Your Interest Rate

Save money with a lower interest rate.

When you first get a loan or credit card you may not receive the lowest interest rate, but you can often get a lower rate later. You may be able to negotiate a lower rate on your credit cards or refinance your mortgage to take advantage of lower current rates. Lower rates will reduce the amount of of interest you pay and the overall cost of the loan over time.

Instructions

1. Make your credit card payments on time, consistently. This will establish you as a good customer with the lender.

2. Call your credit card lender and request a reduction in your interest rate because you are a good customer. Ask to speak with a supervisor if the first person you talk to says he cannot help you. If you are unsuccessful in getting a reduction, call again in a few months.

3. Refinance your mortgage to take advantage of lower market rates. Contact your lender to see what the closing costs and fees are to refinance. It is best to refinance if you are early in the loan. Refinancing may extend your loan term, so be sure you will pay less interest over the life of the loan. Consider refinancing to a 15-year mortgage rather than a traditional 30-year mortgage if you can afford the monthly payment. 15-year mortgages often have lower interest rates.

References

• BCS Alliance: Ask for a Lower Credit Card Interest Rate
• CNN Money: Reduce your interest rate
• The Simple Dollar: Reduce The Interest Rate On Your Credit Cards
• Mortgage Fit: Refinance Mortgage - How much to save by refinancing