Money habits: Lower your interest rates


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April is Financial Literacy Month

Day 8, contact creditors of credit cards to lower interest rates. It’s not algorithm, it’s simple math. If your credit score is high, your interest rates are low. Lower interest rates equal a large saving.

Why are consumers rewarded when their credit score is high? Simple, it shows responsibility. The length of credit history, payments are on time, the utilization is kept below 25% and their money management skills are great.

If you’ve fallen victim to less prudent decisions about your credit in the past and now have been making payments on time and keeping the balance low, it’s time to ask the creditor to lower interest rates.

  • Contact the customer number on the back of the card and identify yourself.
  • Explain to the representative that you want to lower your interest rate. Now is the best time to discuss your payment history, improved credit score and length with the creditor as a consumer.
  • Once granted a lower rate get all the details.

Will every entity be accommodating? Possibly not, which is why you can mention that you have the opportunity to transfer your balance to a competitor. No one wants to lose business. If that fails, attempt on another day. Failure isn’t an option!

If you’ve honestly changed your financial behavior by taking control of your finances and can control your spending, it may not be a bad idea to transfer your balance to a lower interest card if the existing company isn’t cooperating. Find the best interest rates for you at Don’t forget to keep your credit cards OPEN. You don’t want to negatively impact your credit score.

Credit: Bahiyah Shabazz
Credit: Bahiyah Shabazz


Bahiyah Shabazz is the founder and CEO of both Shabazz Management Group and Fabulous & Money Savvy. She has appeared and given financial advice on various media outlets, and is the author of Women Building Wealth.

About Bahiyah Shabazz 1003 Articles
Bahiyah Shabazz is one of the nation’s leading financial experts on the art of maximizing your growth. She's a wealth building expert, author, speaker, financial advocate, magazine and online columnist.

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