The COVID-19 pandemic has caused a lot of financial stress for many people in the U.S. During economic downturn — like the one caused by the pandemic — many people are forced to rely more heavily on their credit cards. But before putting that kind of stress on your credit, you should inquire whether you are eligible for a lower annual percentage rate, or APR.
“Credit cards can be a great tool during times of financial uncertainty,” said Lyndsay Clark, VP/Retail Banking Manager at First Security. “If you are experiencing any kind of financial hardship, whether it’s caused by the pandemic or something else, one of the best things you can do for your finances is to seek out a lower interest rate to keep from plunging too deep into debt.”
How to Negotiate for a Lower APR
Achieving a lower APR on your credit cards can be as simple as making a phone call. Start with your oldest credit card and call the customer service number to see if you qualify for a lower interest rate. Following are some tips on how to convince the company to lower your APR.
After all that, if any of your credit card companies refuse to lower your APR, apply for a card with a low or 0% introductory APR, or transfer your balances to a card with a low or 0% promotional rate to help you weather the storm of the financial challenges you’re facing.
First Security Bank & Trust has locations across North Central Iowa and headquarters in Charles City. Member FDIC.
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