A number of consumers with poor credit are stuck with credit cards that have extremely high interest rates. These consumers may think that because of their low scores they have no chance of securing a more affordable rate, but a recent report from Fox 5 Las Vegas says otherwise.
Individuals with bad credit may be able to secure a better rate if they can show their lender proof that they have improved their credit use during the past few months. By contacting their lender and opening up a dialogue, some may be able to negotiate down their rates.
"There's somewhat of a truth to that," Cena Valladolid, a credit counselor from Consumer Credit Counseling, told the news source. "It's unlikely that a credit card company will just volunteer to reduce your interest rate, and if they do, it'll probably just be for a short period of time. It's not likely you'll have a permanent fix."
Individuals who are looking to lower their rates may also benefit from checking their credit reports for any unfair or unverifiable items that may be hindering their scores. After identifying any inaccuracies or marks that may have been reported without following federal protocols, consumers may have the evidence they need to file a dispute letter to have these items removed. This type of credit fix may be enough to help consumers qualify for a more reasonable rate.