Techniques that Will Lower Your Credit Card APR

Most of the critical factors you need to consider when applying for a credit card is the annual percentage rate (APR). This rate provides an estimate on the amount of money you will have to pay for every swipe of the card. It is important to consider that a credit card may have several APR including the APR for purchases, APR for balance transfer, and APR for cash advance among others.

Some credit card providers also use the tiered APR scheme wherein they will charge consumers varying percentage depending on the balance. But whatever APR a credit card company charges, every cardholder shares one similarity: they want to lower their credit card APR.

Lowering the Credit Card APR

The fastest way to lower your credit card APR is to negotiate with the credit card company. It is not as complicated as it sounds because most companies are willing to accommodate your financial needs. It is in their best interest to collect on the loan instead of dealing with defaults. Below are some tips that will help you get a better rate:

1.Gather Various Credit Card Offers
Millions of people receive 0% credit card offers on their mailbox. However, their instinctive reaction is to immediately put it in the trash can if they’re not interested. Don’t do this because these offers can actually give you leverage during the negotiation. Let the credit card company know that such offers exist to let them know that you don’t need their services.

2.Contact the Credit Card Company
When you contact the credit card company, the first person who will answer the phone is the customer service representative. Unfortunately, they are in no position to offer you a good deal. Insist on talking to their supervisor and appeal your case.

3.Organize Your Credit Card Data
In case the above mentioned tactic fails, you need to organize your credit card information. If you own more than one credit card, determine the outstanding balance of each card, the APR charged, and whether the rate is only an introductory offer. After you see which card has the lowest APR, try to find out if transferring your other balances to this card is feasible.


Measuring Wealth: Are You Rich?

Who can deny that they feel a fission of satisfaction, or excitement even, when they discover that they have a higher net worth compared to their friends? Money gives everyone a sense of triumph especially if they achieve their financial goals. However, is the net worth a real indication of financial strength? And can it be treated as a gauge to predict future stability?
There are many factors that make a person rich and their current net worth is only part of the bigger picture. For example, if a person has current net worth of $1,000,000 but 60% of it is invested in his house, 30% is invested in high-risk investments, and 10% is in cash, can he really claim that he is in a better financial standing than a person who has $700,000 in cash?
Below are some of the factors that you should look into to determine if you’re rich or not:

Active Income

The active income usually comes in the form of the salary and business profitability. It indicates the value of your active work, time, and efforts. Unlike income that come from investments, interest rates, or gifts, the active income can only be earned if you work continuously at the same pace in the near future. Most individuals spend majority of their time earning active income. As a result, their perception of themselves and their worth is closely tied to this.

Rate of Return (ROR)

Other source of income that does not fall under the active income category usually falls under the rate of return. This includes the interest rate from saving account and investment yields on real estate, stocks, and mutual funds. To get ROR, it is apparent that you need some money saved up. The ROR is a good indication of how much money your investment is making. Investing in fixed-rate return is guaranteed to give you positive returns while investing in high-risk mediums entails some risks.

More than Money

So how rich are you exactly? Beyond the numbers, there many other factors that determines “wealth” including age, financial education, quality of relationships, and self-reliance. For example, a person in his 30’s can do more with $100,000 compared to a person nearing retirement. There is more time for him to grow his money and enjoy its yields.


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