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How To Get A Lower APR On Your Credit Card Cash Advance Online Lending


APR is the acronym for Annual Percentage Rate, which means the price users pay for borrowing money. So, we are certain that you have ever seen APRs on your credit card statements or in almost any loan you have taken on.

This value is generally expressed in a percentage and may include any additional fees or charges associated with the annual value of the allowance. Thus, it is not only used for the price you pay to borrow money , but can also be applied in other type of transactions, including cash advances online and late payments.

Typically, the APR on a credit card will depend on the institution you go to and on the following factors:

  • your credit score;
  • the size of the balance;
  • the amount of your monthly payment;
  • your financial responsibility;
  • your commitment to pay the debt and more.

Having a higher credit score often translates into a lower interest rate. However, there are also other options you can apply to reduce the interest on your credit card cash advance online request. But before we dive into them, let’s first take a look at the importance of doing that.

Reasons to Get the Credit Card APR Lowered

To provide in-depth importance of the APR in credit card debt, we use the findings of Bureau’s Making Ends Meet survey, conducted in July 2020. As it turned out, 40 percent of credit-card holders in the U.S. had difficulty paying a bill or expense in the previous year. If you are part of this percentage who carries credit card debt from one month to another, then you may be looking for options to reduce the debt amount.

Example: let’s say you have taken out $20,000 from your credit card. If you had managed to reduce the APR from 20% to 15%, you would save more than $1,000 in fees over one year.

Once you understand the reasons for reducing the APR, it is time to consider available options for that. Here are some moves that may help you cut bills and save money on your cash advance online lending.

Consider All Your Options

With or without your interest rate reduced, it may be challenging to get out of debt in a short period of time. So, it is important to consider the following options first.

Cards with an Introductory Offer

An introductory offer is known as a temporary or promotional interest rate offered as a benefit to acquire a credit card from an issuing company. Most credit cards offer up to 0% APR for anywhere in a range between 12 and 24 months. You can generally find introductory offers on two types of rates, including:

  • Purchasing APR. It is a charge applied when there is outstanding balance and is canceled in the next billing period.
  • Transfering APR. It is a charge applied for the financial movements made from one card to another. They usually offer an introductory period and after that a specific charge is made by the financial company.

Most of these cards require an excellent or good credit report to qualify. But as long as you are approved, you could avoid interest for a while. Once this introductory period has passed, the regular APR percentage will be charged again.

Low-Interest Credit Cards

Offered by regional banks and credit unions, there are credit cards that have lower APR percentages and make carrying a monthly balance less expensive. The interest rate of low-interest cards could be sometimes presented in the single digits, much lower if compared with the average credit card APR (14.63% at the time of March 2022). Here are some cards that can save you a significant amount of interest:

  • AFCU Platinum Visa (4.92% APR variable)
  • Air Force Federal Credit Union Visa (up to 14.75% APR variable)
  • DCU Visa Platinum Secured (14.50% APR variable)
  • First Progress Platinum Prestige Mastercard (13.75% APR variable)
  • Lake Michigan Credit Union Prime (9.24% APR variable)

Typically, these cards won’t come with rewards or other benefits, and not everyone could be eligible for them because of the product requirements, geographic restrictions, the card issuer, and a credit history not good enough to qualify. Most of these cards charge a security deposit, an annual fee of cash advance online, or both.

Debt Consolidation

Also, you could apply for a consolidation loan at a fixed interest rate. As of March 2022, the average personal loan with a 1-year payment period has a 9.51% APR, according to the data source from the Fed Reserve Board. That’s notably lower than the average credit card APR mentioned above, though not everyone will be eligible to qualify for such a low rate. As long as you get approved, you can use the loan to pay off your credit card balances faster.

If you choose debt consolidation, you will need to stop using your credit card cash advances online completely so that you don’t end up making payments both on your loan and credit cards at the same time.

Jeff Campbell