In fact, 69% wound up snagging a lower interest rate just by being proactive. If you’re a long-standing customer with a solid history of making your minimum payments, and you’re staring down a mountain of debt, it pays to contact your credit card company and see if it’s willing to lower its interest rate. Why might your lender agree to such a request? It’s simple. Credit card companies make money by charging interest. If you’re carrying a balance and opt to transfer it over to another card, your original lender won’t make more money off of you. On the other hand, if it drops its rate just enough to keep you on board, it’ll get to keep collecting those payments. Lowering your interest rate by even a point or two could make a big difference over time. Imagine you’re looking at a $16,000 balance, and your card charges 18% interest. If it takes three years to pay it off, you’ll lose $4,824 in total interest charges, but if you manage to knock your rate down to 16%, you’ll spend $4,250 on interest over that same repayment period — not ideal, but better than spending almost $600 more for no good reason.
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