4 Easy Hacks to Save Money on Credit Card Interest

1. Know what your credit card interest rate is

Now, I know you're like, "oh, I know what it is because when I opened my card (for example) it was 14.99%". However, credit card companies can now raise your interest rates without being notified. They used to have to send you that pamphlet with that little small font that made you look like you needed a magnifying glass to read it.

But when you got that little pamphlet, you knew that something had been changed with your credit card agreement.

Now, that no longer has to happen. They can do it whenever they want to. This interest rate increase without notifying you is costing people thousands upon thousands of dollars, and they have no idea it's happening.

So, the first step is to check your credit card interest rate. That's important, and it'll help you with the other tips.

2. You can negotiate a lower rate

That's right, just like with your utilities, you can negotiate a lower rate. What you do is you call them, and I always suggest being as nice and kind to them as possible, and I would say to them, I've been your loyal customer for a very long time. I have always enjoyed using your card.

I like the benefits and the customer service, but I just discovered that my interest rate is fill-in-the-blank. I'd like to ask if I can have a lower interest rate because I just received an offer from (name of another company - Discover).

So, I would say I just got an offer from Discover. They're offering 0% for 18 months on a balance transfer. I don't want to stop using your card. Is there anything you can do to help me out?

And they might say to you, which is more than likely they will because, remember, they're a business, and they want to keep your business, that they will lower your rate even by about 5%. 5% is a lot.

Then you have a choice to make. You can stay with your card and dedicate yourself to paying it off so you're not paying that high interest, or you can do a balance transfer.

However, there are negative and positive aspects to a balance transfer. It's not all that it's made out to be. By offering that option to them, more than likely, they're going to offer you a lower rate, and that way, you save money.

So now you've called up your credit card companies, found out what each of their credit card interest rates are, and negotiated a lower rate. What can you do next?

3. Take the card with the highest interest rate out of your wallet

Put it somewhere you know you won't access it, whether you have a safe or stick it in a drawer. I wouldn't shred it like people say. I wouldn't cancel the card or anything like that.

I would take it out of my wallet because if we're shopping, you know, whether it's gas, groceries, or anything in between. You are in a hurry; you're just going to take out a card, and then later, you'll realize that card had the highest interest.

So, instead of having that happen, avoid it by taking that card out of your wallet.

4. Disconnect that card from any shopping apps

For example, the big one is Amazon. Take it out if your highest interest rate credit card is linked to your Amazon account. Put a different card in or remove the card altogether, and that way, the next time you shop on Amazon, you'll have that moment where you have to put in your credit card information, which might make you think twice about that purchase. That is an extra tip right there.

But disconnect it from any shopping apps, from any subscriptions that you have, whether it's Netflix, Hulu, or any other channel that you have that's linked to that card. Move it to the credit card that has the lowest interest rate.

That move alone can save you so much money because now the credit card that has the highest interest rate is no longer going to continue to accumulate a higher balance. The higher the balance, the more you pay in interest.

So, your goal is to at least stop increasing the balance. Of course, it will increase because the interest rate continues to compound until you pay it off, but it's not costing you more in interest and charges because you've already made these two moves.

How to save money on credit card interest

I hope you found these tips on how to save money on credit card interest helpful. What tips do you have for saving money in credit card interest? Share in the comments below.

Next, check out my 6 Easy Money and Time Saving Tips.