Carrying a balance on a credit card has become more expensive in recent years, with the average interest rate now at 22.15%. Many cardholders are paying even higher rates, depending on their credit history and the terms of their cards. As the Federal Reserve prepares for its next meeting on September 15 and 16, there is uncertainty about future borrowing costs. The central bank is unlikely to lower its benchmark interest rate in September and may instead raise it to help control inflation. This could lead to higher interest rates overall, making it even more important for people with credit card debt to find ways to reduce their interest charges without harming their credit scores. One way to potentially lower interest charges is by directly asking the credit card issuer for a lower annual percentage rate (APR). While the issuer isn’t required to agree, those with a good payment history or improved credit may have more success. It’s important to check if the request would require a hard credit inquiry, which can temporarily lower the credit score by a few points. For those experiencing financial hardship, enrolling in a credit card hardship program could offer relief. These programs may temporarily reduce interest rates or lower monthly payments. However, the card issuer might close or restrict the account, which could affect the credit utilization ratio — the percentage of available credit being used — and potentially impact the credit score. Another option is transferring the balance to a new credit card that offers a low or 0% introductory APR. This can help reduce interest charges, but applying for a new card may result in a hard inquiry, causing a small, temporary dip in the credit score. Additionally, opening a new account may affect the average age of credit accounts, though this impact is usually short-term. Some borrowers may also consider enrolling in a debt management program through a credit counseling agency. These programs can help negotiate lower interest rates or waived fees with creditors. While this doesn’t directly affect the credit score, creditors may require closing the credit card accounts involved, which could temporarily impact available credit and the utilization ratio. Each strategy has different effects on credit scores, and borrowers should carefully consider both the immediate and long-term consequences before choosing a method to reduce their credit card interest.