If you have been noticing that your credit card payments are going up without you using your card, it may be time to take a look at your interest rate. Credit card companies will raise your credit card interest rate for many reasons, including late payments or chronically spending over your limit. If high credit card interest rates are something you would rather avoid, try some of these strategies to help lower your interest rates and lower your overall credit debt.

Ask

It may seem simplistic, but Financial Web suggests asking your credit card company to lower your interest rate. If you have a long-standing history of consistent usage and on-time payments, the company may be inclined to want to keep a good customer and lower your interest rate by a few points. It may help to have a backup plan to use as leverage in these negotiations. Find a credit card with a lower interest rate to which you could transfer your balance, and let your existing company know that if it does not help you with your interest rate, you will take your business elsewhere. If the company will not lower your rate, transfer your balance to the lower card.

Opt-Out

As of 2009, U.S. law states that all credit card companies must inform their customers in writing of any upcoming interest rate increases. According to CreditCards.com, the consumer must be given the option of opting out of that increase. This means you would submit an online form or send a letter to a specific address telling your credit card company that you do not want your interest rate increased. Be aware that the company can decide to cancel your card and not allow you the option of using it anymore. Be sure to read the terms and conditions of your credit card agreement, especially the section on opting out of interest rate increases, so you understand what your options are and what the consequences of opting out would be.

Shop Around

Financial Web recommends shopping around for a credit card that offers a low interest rate before signing any agreements. Some credit card companies offer very low rates but only on an introductory basis. Read all of the terms and conditions of an agreement before acquiring a credit card. Research the different financial institutions and determine what kinds of deals they have on credit cards. If you take the time to shop before you get your card, you can reduce the amount of interest you pay while you are using your account.

Source:

Financial Web: Fight Your Credit Card's High Interest Rate

Bankrate.com: Want a Lower Credit Card Rate? Just Ask

CreditCards.com: How to Opt Out of Credit Card Rate Increases

Resource:

USA Today: Why Banks are Boosting Credit Card Interest Rates and Fees