If you’re a credit card holder, you should learn some of the tricks of cutting down interest rates. Is it really possible to lower your credit card interest rates? The answer is ye. If you know the right steps.

Here are 5 practical steps to help you cut down those high credit card interest rates.

1.Review your credit card’s terms and conditions.

Even if you’ve had the card for a long time, there may be terms in your contract that you’re not aware of. Does the “universal default” clause apply to your credit card? If yes, your credit card company can increase your interests at any time without warning even if you’re on time in submitting your payments. All it takes is one late payment to any one of your creditors (not necessarily your credit card) and you could be paying more on your next credit card bill. Therefore, it’s important to understand every statement in your credit card agreement so you’ll know exactly how to handle your card.

2.Find out what other credit cards have to offer.

Competition among credit card issuers is definitely a good thing. Check out what other credit cards have to offer and you may find one with a better deal. Of course, you’ll want to be careful about choosing and signing up for a new card. Aside from a low interest rate, make sure that the rest of the fees and terms are reasonable.

3. Transfer your credit card balances.

0% APR balance transfer credit cards are also worth considering especially if you own multiple credit cards. By transferring these balances over to a new card, you can significantly save a lot by not paying the monthly interest even just for a limited time period. However, see to it that the rate will remain reasonable after the introductory period and that there are no excessive fees associated with the card.

4.Ask for a lower interest rate.

Not many credit card holders consider this important step and some may even be hesitant or doubtful. Nevertheless, there’s nothing wrong or embarrassing about requesting for a lower rate especially if you’ve been a long time customer and a good payer at that. You’ll be surprised at how credit card companies actually agree with such requests just to keep their customers.

When asking for a lower rate, make sure that you’ll be speaking with the right person. Customer service representatives of the credit card company may turn you down because they simply don’t have the power to make modifications. Instead, ask to speak with the manager of the bank and politely explain why you’re requesting for a lower rate. Even if your credit card issuer refuses, it’s still worth the try.

5. Pay your monthly balances in full.

Make it a goal to charge only the amount that you can afford to pay in full by your due date. This way, not only do you avoid the interest rate, you also minimize your risk of bad credit. It may be tempting to pay only the minimum required due, but such a habit means you’ll be taking a longer time paying off your balances and it could cost you big on the additional interest rate costs.