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If your credit card bill has felt a bit more substantial recently, you may be on to something. Credit card annual percentage rates (APRs) have climbed dramatically over the past two years, topping 22% on average — the highest level in decades. That, in turn, is adding a hefty amount of interest to the average cardholder’s revolving balance each month. And, while the Federal Reserve has finally started to trim rates this year, that hasn’t yet translated into meaningful relief for most cardholders.
But while you likely won’t see credit card rates drop organically any time soon, right now could still be a smart time to try and lower your credit card interest rate on your own. Your current credit card APR isn’t necessarily set in stone, after all, and locking in a lower rate now could save you hundreds or even thousands of dollars in interest charges over the coming year. Credit card companies have more flexibility than many cardholders realize, and there are several tried and true methods many other cardholders have used to secure a better rate.
Still, not every approach works for every borrower. Your best path to a reduced APR will depend heavily on your credit profile, existing balances and how much time and effort you’re willing to invest. So, what are some of the ways to potentially bring your rate down this November, and what should you know about each? Below, we’ll examine five worth knowing.
Find out how you can start tackling your expensive credit card debt now.
5 ways to get a reduced credit card APR this November
There’s no single route to securing a lower interest rate, but there are a few strategies that can make a big difference. Here are some of the most effective ways to reduce your credit card APR before year’s end:
Ask your card issuer for a better rate
One of the simplest and fastest ways to lower your credit card APR is to just ask for a better rate. If you have a solid payment history, consistent on-time payments or an improved credit score or profile, your card issuer may be open to negotiating a better rate, especially now that rates are starting to trend downward overall.
When you call, explain that you’ve been a loyal customer, highlight your payment record and mention that you’ve seen lower-rate offers elsewhere if you have. Many issuers may be willing to reduce rates by a few percentage points to retain good customers. It’s not a guaranteed route to a lower APR, but it’s one of the simplest and most direct approaches you can take.
Take steps to get rid of your overwhelming credit card balances today.
Transfer your balance to a card with a 0% APR
A balance transfer credit card can be a powerful short-term solution for those who want to secure a significantly lower credit card APR. These cards often offer extremely low or 0% promotional APRs for 12 to 21 months, and if you can secure one, it will give you breathing room to pay down your debt while temporarily erasing interest from the equation.
While you’ll likely need good to excellent credit to qualify for the best balance transfer offers, the savings can be substantial. Just be sure to factor in any balance transfer fees, which are typically 3% to 5% of the amount transferred, and make a plan to pay off the full amount before the promotional period ends. Otherwise, your rate will jump sharply.
Consolidate your debt with a lower-rate loan
Debt consolidation loans can be especially attractive this November, as rates may continue to ease after the upcoming Federal Reserve meeting. That, in turn, could mean that you have an opportunity to lock in a lower overall rate on your credit card debt.
When you take out a debt consolidation loan, you use it to pay off your credit card balances in full, essentially replacing your high credit card APRs with a fixed low rate via the loan. As a result, you’ll get a clear payoff timeline and roll your monthly payments into one loan obligation. That not only simplifies your finances but can save you hundreds or more in interest over time.
Enroll in a debt management program
If your credit score isn’t high enough to qualify for balance transfers or low-rate debt consolidation loans, a debt management program could be the next best thing. Offered through credit counseling agencies, these programs will work to try and secure reduced interest rates on your behalf, sometimes cutting APRs to around 8% or even lower.
As part of the process, you’ll make one monthly payment to the credit counseling agency, which distributes the funds to your creditors. The tradeoff is, though, that you’ll need to close your credit cards while you’re in the program. But if your goal is long-term debt relief, a debt management program can help you achieve it faster than you otherwise could.
Take advantage of a hardship program if you qualify
If you’re struggling to keep up with your credit card payments, many card issuers offer hardship or forbearance programs that will temporarily lower your APR or pause interest accrual. These programs aren’t permanent, but they can offer critical relief while you stabilize your finances.
If you’re planning to pursue this option, though, just make sure to contact your issuer early, before you miss payments. Once an account becomes delinquent, it’s much harder to qualify for these types of concessions.
The bottom line
Credit card interest rates may still be near record highs, but they don’t have to stay that way for you. With rate cuts beginning to ripple through the lending world, November could be the ideal time to renegotiate, consolidate or refinance your debt into something more manageable. But whether you secure a lower rate through your issuer, a debt consolidation loan, or a structured management program, acting now could save you hundreds of dollars and offer you a little financial breathing room heading into the holidays.
