How to Get Lower Interest Rates on Credit Cards | Chase (2024)

FAQs

How to Get Lower Interest Rates on Credit Cards | Chase? ›

If you're not happy with your credit card's interest rate, try to negotiate with your card issuer. Do your research on your account's history and terms, as well as competing card offers, so that you can make an informed argument. Improving your credit score tends to be an effective way to wrangle a lower interest rate.

If you're not happy with your credit card's interest rate, try to negotiate with your card issuer. Do your research on your account's history and terms, as well as competing card offers, so that you can make an informed argument. Improving your credit score tends to be an effective way to wrangle a lower interest rate.

Key Takeaways

Your interest rate may have nothing to do with your credit score. Rewards credit cards typically charge a higher APR than cards without rewards. When you pay your entire statement balance by the due date, you won't be charged interest on purchases.

Make multiple credit card payments per month

This is because the interest you'll pay is actually based on your average daily credit card balance, not the total balance at the end of a billing cycle. Making a few smaller payments each month helps keep that average daily balance lower, thus lowering your interest.

A good credit card APR is a rate that's at or below the national average, which currently sits above 20 percent. While there are credit cards with APRs below 10 percent, they are most often found at credit unions or small local banks. If you don't have good credit, you're likely to receive a higher credit card APR.

Credit card interest rates can make it harder to pay off your debt, but you may be able to negotiate a better rate or a limited-time offer by simply calling your credit card issuer. While it can some time and effort and your request may be denied, it doesn't hurt to ask.

Card rates are high because they carry more risk to issuers than secured loans. With average credit card interest rates above 20.7 percent, the best thing consumers can do is strategically manage their debt. Do your research to make certain you're receiving a rate that's on the lower end of a card's APR range.

The direct step to a lower interest on credit cards is to call the card company and ask for a lower rate. However, no call should be placed to a card company without ready information about the account, your credit history and even competing offers from other card companies. When calling, don't be nervous.

It is possible, with some effort, to negotiate or renegotiate your interest rate(s). Results may vary depending on your credit history, outstanding balance and other factors, but if you're prepared and ask at the right time you may stand a good chance of lowering your rate and saving yourself money.

You can ask your credit card company to freeze the interest on your credit card, but there is no legal obligation for it to agree. The good news, though, is there are several voluntary codes of conduct most credit card companies have signed up to, which encourage them to help you if you are in financial difficulty.

What APR will I get with a 700 credit score? ›

A credit score of 700 gets you an interest rate of 3% to 6% on car loans for new cars and about 5% to 9% for second-hand cars. Please note that these figures are just estimates, not interest rates.

A 24.99% APR is not good for mortgages, student loans, or auto loans, as it's far higher than what most borrowers should expect to pay and what most lenders will even offer. A 24.99% APR is reasonable for personal loans and credit cards, however, particularly for people with below-average credit.

Penalty APRs are part of why credit card overspending can be so dangerous, as they may reach higher than 29.99% when a payment is at least 60 days late. Interest rates this high would be unthinkable in most other common lending contexts.

Generally speaking, borrowers with credit scores of 760 or higher get charged the lowest interest rates. On conventional conforming loans, which must adhere to Fannie Mae and Freddie Mac guidelines, a 780 may qualify you for a slightly lower rate—though it depends on your down payment amount.

Sometimes, though, an issuer will offer you a 0% period for a card you're already carrying, in an attempt to get you using the card more often. To qualify for a 0% offer, you'll typically need good credit or better (generally defined as a score of at least 690).