One of man’s greatest inventions is the credit card. By just using a piece of plastic, you can buy groceries, buy a plane ticket, shop, eat in a posh restaurant or do anything you fancy. It is the apex of human ingenuity applied in the field of finance and daily living and it symbolizes the purchasing power of the modern man. However, very few people realize that it is also a very expensive financial tool. It would be most ideal for people if they can get a lower interest rate on credit cards.
The most expensive credit facility
Using as a credit card will cost the cardholder loads of money in the form of high interest rates. The credit card is a form of unsecured loan that usually charges higher interest than car loans and other loans that have some sort of security. The creditor has no control over the amount that the cardholder will purchase by using the credit card. It is because of the fact that the card holder has a freehand in using the card that financial difficulties start to brew. When hard times come, credit card holders tend to use the card more to make up for the lack of income being experience, unwittingly driving up the cost of living.
Controlling the Use of Credit Cards
It is therefore wise to control the use of credit cards to manageable levels in order not to suffer from the consequence of high interest costs that follow. Some groups of people have a lifestyle that makes it hard for them to control the use of their credit cards. If you belong to this category, your only solution is to find a way to obtain a lower interest rate on credit cards. The best way to do this is to negotiate with the company that issues your card. It is not hard to transact with credit card companies because they are always accommodating to their clients.
Negotiating with the Credit Card Company
If you notice that the use of your card has significantly increased, you should make an appointment with your credit card company and negotiate for a reduction in interest charges. You have to make a quick survey of the prevalent interest rates of various loans in your locale so you can negotiate better. Ask the company for a lower interest rate mentioning the fact that you have substantially increased the volume on your credit card. Most credit card companies will acquiesce to such requests because they value the high volume of business generated by their credit cards.
Other Options are Available for the Cardholder
You should not lose hope if the credit card company will not consider your request. There are other ways to get a lower interest rate on credit cards. One way is to reexamine your lifestyle and see if you can get rid of some extravagant expenses that you don’t really need. Another way is to transfer your balance to another credit card company that offers lower interest rates on their cards.