Credit Card APR

Do you check your credit card APR (Annual Percentage Rate) regularly?
Why is it important to have a look?

These days banks are coming up with many policies which may seem very beneficial on the surface level until you peep deep into the issue. If you have started feeling confident that the new scheme of the bank suits you like a glove, you might be disappointed later. It is because the banks have a tendency to increase their charges after the initial couple of months without prior information to you. You are paying them as high as 18% - 20%. The payment average in the US is close to 18% and we feel it is much more than you were actually entitled to pay.

Can I make the bank lower my rate?

We are quite optimistic about the whole issue. We actually feel that you could convince the bank about lowering your rates although it sounds quite unbelievable.

There are some people who with their deal breaker convince the bank to lower their interest rates.
When you are a good customer, you have nothing to lose rather the bank is at a loss if you close your deals.
Convincing the bank about lowering the interest rates can also depend on how regular and true you have been about handling transactions with the bank.
But irrespective of your credit history, one should take this call, because you might experience another pleasant shock.
Yes, in most of the cases the bank might even come down with their interest rates inorder to retain you.
It costs a bank huge sum of money to find a new customer.
The business the bank does based on a credit taken by you is huge and the competition is also intense.
Banks are always in a rat race to lure you into their new credit schemes.
And once you go for it, you are a valued and profitable customer for them. Thus they would like to retain you keeping in mind their best of interests.

How much can you save?

There is no exact amount fixed. If your current rate is 18%, you can force your bank to drop its rate to something even as less as 10%. This way you save a lot of money and pay only on the basis of the remaining 8%. A dollar saved is more than a dollar earned.

This saving depends on two factors :

The amount you owe.
The amount you're paying per month.

These are some facts on Credit card annual percentage rate, but there are much more to it. Read more of it in our member's only articles. A person himself is responsible in building and destroying his own life. Thus think twice before you leap and take experts help if you are in trouble.