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Low Interest Credit Card Canada
3 Oct 2019

Tips of How to get and Maintain a Low Interest Credit Card Canada

The cost of credit continues to soar high. The last thing you need is a credit card with a high-interest rate. Manage your finances by opting for a low interest credit card Canada.

Low interest credit card Canada ensures that you do not fall behind on your payments. Delayed credit card payment is one of the leading reasons for increased credit card interest. A high-interest rate, on the other hand, can drain you of your hard-earned money. It is easy to lower your credit card’s interest rate and maintain it at that. The only thing that is required of you is to employ the right tactic and watch how your interest rate would be low for a long time. Negotiating a lower rate and transferring your balance to a card with a lower rate are two of the best ways you can easily lower your credit card interest rate.

Transferring your balance to get a low-interest credit card Canada

A balance transfer is a process of moving your credit card debt from one card to another. The new card usually has a lower interest or introductory rate. By so doing the total money you will pay your creditor would not be as much as it would have been had you not shifted your debt. However, before you transfer a credit card debt, below is what you need to look out for if you are to get the best transfer deal.

  1. The balance transfer fees- you will be doing yourself a great favor if you chose a credit card whose balance transfer fee is affordable. You, therefore, need to shop around to get a transfer deal that is to your liking. Lenders vary, and if you do not put any effort to look for the best one, you might end up settling for a credit card that will cost you more than you had initially anticipated.
  2. Annual fees- Just like the balance transfer fees, the annual fees defer depending on the type of credit card you choose to transfer your debt.  A balance transfer will only work in your favor if you carefully evaluate the options you have and choose a card which will cost a lower annual fee than the rest.

Negotiating a lower rate to get low interest credit card Canada

You often tend to think that getting a new card with a lower rate is the best solution, but unfortunately, it is not.  Sticking to your previous card and finding means of negotiating for a lower rate is the way to go. Below is how you can succeed in negotiating for low-interest rate credit card in Canada.

  1. Do your homework by shopping around- You can confidently negotiate leverage if you knew what other credit card companies have to offer. If you find out that competing companies offer better deals, you can use that information to ask for a lower rate for your credit card.
  2. Start with your oldest card– Companies value their longtime customers. Loyalty, in this case, is of paramount. A credit card issuer would not mind lowering your interest rate as a little token of appreciation.
  3. Be polite and persistent- Persistence does not necessarily mean you bother the credit card company with endless phone calls in a day. You might end up being in the company’s blacklist. Rather, be rational in every conversation you have. Better yet try as much as possible to be in touch with a representative who understands your plea. You may eventually stand out from the rest of the crowd, and a lower interest credit card might be coming your way sooner than you had imagined.

Maintaining a low-interest rate

Even though you manage to get a low interest credit card Canada, the rate can always vary depending on a few factors. Below are a few ways you can keep a good interest low.

  • Pay your balance- Late payments are one of the major reasons for the increased interest rate. You can avoid it by making sure that you pay your balance in time and in full.
  • Checking your credit score annually- having full knowledge of what your credit score is would be a strong negotiating tool. A credit card issuer would charge you a lower interest rate since you have maintained a good credit score.

Low interest credit Card Canada makes it possible for you to pay up your balance within the required time. You might also have managed to get a lower interest rate credit card but if you do not take great care when it comes to paying your balance, tables might turn. It is within your control to make sure that once you have locked a low-interest rate, it should always remain low.