Do you know the current interest rates of your credit cards?
One of the easiest ways to get a fresh start in your finances is to simply know the current interest rate for each of the credit cards that you’re carrying in your wallet and compare those rates to others in your credit score range. Then, if you find that you’re paying too much interest based on the national averages (and based on individual credit cards offered in your credit category), you can either apply for a new credit card with a lower interest rate or you can contact your current credit card companies individually to see if they will match the rates that you can get elsewhere. Either way, you will save money – just be careful and don’t apply for too many credit cards. Remember, hard inquiries to your credit count toward your total credit score. (It’s a small percentage, but sometimes a point or two matters!)
How does your current interest rate compare to the national averages?
Here are the current national averages for each category of credit and for various types of credit cards:
It’s always a good idea to compare your interest rates at least once a year to make sure you aren’t paying more interest than you should. I usually compare mine at tax time, but if you have a significant improvement in your credit score, then you may want to check them sooner so that you don’t miss out on the opportunity to save money with a lower interest rate.