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The largest debts in America are credit cards.  Total credit card debt exceeds a trillion dollars a year.  This happens for several reasons, but one of the main ones is the high level of interest rates. In this regard, it is not surprising that many are wondering how to lower credit card interest rate to reduce the debt burden on your budget. The truth is that almost every credit card holder has the opportunity to reduce the annual interest rate, you only need to make some effort to this. If you do this, you can actually save hundreds of dollars annually without overpaying creditors at an interest rate. We are sure that you know where to apply the money that will be freed up thanks to the lower credit card interest rate. Next, we consider the possibilities that almost every American has.

First of all, take care of your credit

The condition of your loan indicates to your lenders your reliability or insecurity. Usually they primarily consider your credit rating and credit history when you apply for a loan or a credit card. Depending on the condition of your credit, they often determine the annual interest rate for you. Therefore it is worth taking care of this in advance, if there is such an opportunity. The higher your credit score, the lower the credit card interest rate lenders will offer you in most cases. Of course, this is not the only indicator that they are targeting, but they are looking first and foremost for your credit. Do not allow late payments, which always negatively affect your credit rating. Also, do not raise the balance of your credit card, thereby increasing the level of use of the credit limit. The credit limit opened for you is recommended to use no more than 30%.  Anything above this mark will lower your credit score. Ideally, to maximize the lower credit card interest rate, you need to have an excellent credit, but unfortunately not many can boast of such a level of credit. However, it is worth striving for this in order to receive the best offers from lenders. This will be your powerful trump card and argument in front of creditors. Control the status of your credit use the opportunity to get your credit report annually for free in the US credit bureaus. In addition, these reports may contain any errors or inaccuracies that you can dispute.

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Do not be afraid to change the lender

High competition forces credit companies to appreciate each client, despite the different nuances of cooperation with them. This is a plus for you in negotiating a lower credit card interest rate. But you don’t have to bluff when you talk to a lender about your care for another company. You must be ready to really leave by refusing their services. This is especially true when some of the conditions specified in the footnote under the asterisk and written in small print in the contract make you pay more and more. If the issuer of the credit card does not want to meet you first in the first lower credit card interest rate, then tell him goodbye. Believe us, each new customer will cost the company significantly more money and effort than retaining the old one.

Use the ability to transfer balance to another credit card

Balance transfer from one credit card to another is one of the excellent and affordable opportunities for the majority for lower credit card interest rate. Firstly, due to the high competition in the credit market, many lenders are ready to offer very attractive conditions for new clients. Very often, this is a zero interest rate over several months, sometimes even 1–1.5 years, which gives a wonderful opportunity to pay the debt during this time. If your debt is large enough or you have several credit cards with a high balance, then transferring the balance to one credit card is your chance to get rid of these debts. It is worth using this opportunity.

Always look for new opportunities to reduce interest rates

Nowadays it is not a secret that different credit cards have different perks. Some of them are aimed to be cost-saving for travelers. Others provide different features such as cashback, lack of annual fee and so on. That’s why you will always find something for you whether you are addicted to traveling or keen on shopping or low-income earner. In this article, you will find out which credit cards exist and in which particular niche they can be used. But before we move on to three credit cards which you must have it is important to clarify the fundamental moments about these cards. Reward system We are going to divide cards by the types of reward system. The reward that you receive can be cash, points, miles (if it is a travel card) and so on. The way to earn these bonuses is easy and sounds like this: spend more cash - receive more bonuses. Remember that perks which you receive are useful as long as you are able to pay the creditor debt on this card every month. No matter how cool bonuses are when not paying your monthly credit will simply lead to the decline of your credit score. Three types of credit cards Now as you are aware of the reward principle we will speak directly about three credit cards which you must have. A card for everyday use Commonly known as a card which you use to make everyday purchases it is used in most situations such as an everyday trip to the supermarket. This card is perfect if you only start to explore the world of credit cards. Most of these cards are working on a point system. When you pay with this card for example at the gas station or at the restaurant you receive points. Usually, a particular amount of dollars spent equals one point. In every bank this particular amount is different. After you gain enough amount of points you can exchange them for a reward. There is a variety of rewards you can get. They are coupons, different discounts in special places such as the cinema, restaurants and so on. Still, there is another type of everyday spending card that provides you with cash. This reward system is called “cashback”. This is how it works: you receive a small percentage of cash received back from your purchases. In most stores, this percentage won’t be higher than five, but there can be special offers when you will receive around 15 percent of cash back in particular stores. Also, don’t forget that your bank account is candy for hackers. That is why it is a wise choice to get an everyday spending card because it has the highest security level. Usually, you will receive an SMS when you make a purchase so it is pretty easy to spot transactions which you didn’t make. A card for travelers If you are addicted to traveling and do it regularly it is reasonable to get a travel card in your wallet. It doesn’t matter where you travel north or south east or west in every place on the earth you will always save a huge amount of money with this sort of card. There are countless types of travel cards. Some of them work on the point system. Here is working the same principle as with everyday credit card. You will earn one point for a particular amount of dollars spent. However, the bonuses which you can get for your points are targeted for travelers. For example, you can redeem a free flight, discount on accommodation and other useful perks for travelers.

Credit cards in the United States have gained immense popularity. Three-quarters of the population have different types of credit cards. People are used to make purchases of goods and services and even pay their bills with credit cards. Credit cards provide a credit limit and make it possible to spend more than you have in your pocket. Credit card conditions can vary greatly from one to another. The high demand for credit cards makes lenders issue many different types. Some types of credit cards do not have an annual fee, which attracts so many consumers, but annual credit cards still exist and there are reasons for that. Annual fee can range from 50 to 500 dollars, but they continue to produce these credit cards, because they are also in demand. Let's look at the reasons why such credit cards are in demand and whether you should have one of them. Sign Up Bonus A credit card registration bonus is one of the attractive conditions. Instead of getting benefits over time, you get them immediately, which is always good. Some issuers offer such a bonus when you have spent certain amount of money during a certain time. Credit cards with an annual fee usually offer a bonus in the amount that is several times higher than the bonus for registering other types of credit cards. On the other hand, to receive such a bonus it is often necessary to spend a lot of money, which may not be affordable for everyone. Rewards and Cash Back One of the ways to attract customers to their credit cards are various rewards. They are offered in the form of cashback, points, air miles, discounts and other rewards. The more money you spend with a credit card, the more rewards you earn, getting a certain percent from its amount. And in this case, credit cards with an annual fee offer the best conditions for customers and a much larger percentage of remuneration from your expenses. If you make regular purchases, it can be very profitable for you.

In recent years, it has become more and more difficult to find a person who has never taken out a loan. No matter what is it, consumer credit for the purchase of a refrigerator, or a mortgage for an apartment. In recent years more people and the world community as a whole are becoming life loan hostages. As a result, the “lion’s share” of all borrowers in a few years changes their status and turns into debtors. The better the credit system is established, the more customers use this type of banking services. As a result, not all of the borrowers can cope with the monthly loan payments, and the number of debtors is increasing. This why US financial institutions have come up with a temporary solution for ordinary people, who is in a state of personal crisis - debt consolidation. This term is a bit similar to the usual restructuring already known before. However, there is a significant difference between them. When restructuring, we are talking about a single loan, when consolidation implies the consolidation of all of a borrower debts into one new loan. When there is no other way out Debt consolidation is a kind of extreme measure for the debtor. This service should be resorted to only as a last resort. If there is simply no other way out, combining all debt obligations into one new loan is seen as the only adequate solution (albeit temporary) of the existing problem. After all, the debts consolidation and one large loan processing will help to slightly reduce the monthly payments and extend the time of their payments for a while. If you experienced temporary financial difficulties, this option may not only be a last resort, but also a very good solution. The rising needs for the debts consolidation You maybe want to think about your arrears consolidating in case you have some of the next issues: very high-interest rates on your loans or credit cards; big and multiple debt amounts with many creditors; every day calls about payment arrangements for your accounts; adding up charges and due fees for late payments; Growing stress pressure overall your sick financial health. If this is your case, then you definitely need to go for debts consolidation as soon as possible! How your debts consolidation can help to get relieved Consolidation has two goals: The first is to help you streamline with your payments, eliminate confusion in amounts and dates, and therefore avoid any delays and penalties. The second is saving. Combining your loans into one makes sense only if the rate on a new loan will be significantly lower than the average percentage on your current debts. And if your current lenders do not want to restructure the loans issued to you and lower their rates, consolidation will be an excellent way out for you.