Tips for Lowering Your Credit Card Interest Rate

Consumer finance experts say the first step is to ask your card issuer to reduce your interest rate, and with average card balances now about $6,500, that move could help chip away at debt, the article says. The average credit card rate is about 22 percent, according to the Federal Reserve, and people with tarnished credit or late payments can pay around 30 percent.

Balances rose to $1.23 trillion in the third quarter, up 5.75 percent from the same period in 2024, and card delinquencies began to “flatten” last year, the Fed said. TransUnion reported in November that the average balance was just over $6,500. Bruce McClary of the National Foundation for Credit Counseling says asking your issuer can work, especially if you have been making payments on time and have a score of 740 or higher, or if your score has been trending up.

He warned that a reduction of one to three percentage points is probably the best-case scenario and advised confirming your current rate, pulling your credit report and calling the customer service number on the back of your card — and being polite. If a rate cut isn’t available, card issuers may offer other options, including in-house balance transfers.

Paying twice a month can also reduce interest costs, and balance-transfer cards with temporary 0 percent promotions of 12 to 21 months are available to those who qualify. The piece notes transfer fees often run 3 to 5 percent of the balance — for example, up to $300 on a $6,000 debt.

ask card issuer, lower credit card interest, average credit card rate, average balance $6,500, balance transfer cards, 0 percent promotions, balance transfer fees, pay twice a month, debt management plan, hardship reduction, bruce mcclary, transunion report, federal reserve data, national foundation for credit counseling