Credit cards are, in essence, unsecured cash loans, with a high risk to the bank, and that is why their annual interest rates are usually much higher than, for example, mortgage interest rates and more comparable to fast loan rates . That is why you, as a credit card user, should know that there is always a chance to reduce this amount of interest, and usually all that is needed is a simple call to the bank for a request to evaluate and reduce that interest rate.
Credit card issuance is usually a lucrative business for banks and that’s why this niche in Latvia and the world is one of the most saturated business opportunities with the greatest competition. And in such competition, it is often possible to go to another competitor for a better deal, or to convince your bank of lower interest with the threat of going to another financial institution for better services. Most often you just need to get in touch with your bank, asking if you could not get a lower annual interest rate for your credit card, but if the bank employee does not immediately agree to safely apply, you want to talk to your credit card account manager who has more power and who will be much easier to overcome by reducing interest rates.
Banks determine these interest rates by many and various factors ranging from your income, the frequency of payments, to the term you are a bank customer, or even the total number of credits and deposits. Since most of these factors are variable and usually improve, maybe even you get lower interest rates than the day you received your credit card, and after making the call, the bank will be happy to lower it. These rates range from 9% to 25% per annum, depending on the factors mentioned above, and precisely because there is such a high percentage of interest rates that credit card account managers are usually given the opportunity to cut interest on a certain number of customers, or simply enjoy future benefits. search.
If, in the event of a call, the bank immediately refuses you, and does not want to connect you to the direct manager of your card, there is always a chance to go to the bank physically and try to convince another representative, or to call later and try again. But if all these efforts are in vain, it is always possible to tell a bank representative that you have found a better deal and are ready to leave them, and even if they don’t convince them, maybe it is really worth visiting another bank? Most likely, you will be pleasantly surprised by the credit card interest rates offered by other banks, because in this sphere, as I mentioned at the beginning, the competition is huge and all banks are trying to get new customers, and usually it is possible to place an existing loan with another bank with small ones. interest payments on the total amount of credit.
Since you are safe and try to always ask for better deals, for someone who does not want anything , but for those who constantly demand better things, if not always, but for the most part they also come true.