5 Credit Hacks to Lower Your Interest Rates

Balance Transfers 

Taking your balance from a high-interest rate credit card and moving it to a low interest one is a simple and easy way to lower interest rates. If you are someone looking to improve their interest rates, there are many 0% balance transfer options out there. In general, this is a great way to get a lower interest rate on your credit cards but when doing your own research on which transfer option is right for you, be mindful of any transfer fees. 

Improve Credit Score 

In order to earn lower interest rates from a bank, you need to make sure you have an adequate credit score. By improving your credit score, you prove to banks that you are responsible, making you eligible for lower interest rates. But you might be wondering, how do I improve my credit score? 

Here are some simple steps you can take: 

  • Keeping track of charges 
  • Thinking long term with spending and saving 
  • Sticking to a budget 

If you find that you have bad credit, you probably have bad spending habits. 

Apply For a New Credit Card  

After big purchases such as a car or a house, your credit score can suffer which could see you paying a higher interest rate if you get a new credit card during this time. However, you can apply for a credit card right after the purchase. 

This is because there is generally a bit of a lag following a purchase between when you buy something and when the effects show up on your credit score report. If you absolutely must get a new card, we recommend doing it before the report is updated. This will allow you to get the lowest interest rate possible because your credit score is much lower than it will be once it updates. 

Ask Your Friends…  

If you have friends in the same bank, try asking them how much they are paying on interest rates. We know that it’s awkward to talk about money with friends. But this can ultimately be beneficial for everyone involved. Knowledge is power, so knowing how much your bank is charging other people can really help when it comes time to ask. 

A big part of getting lower interest rates is negotiating. And if you’re going to negotiate, you need the information to back it up. Now, what do you think is more effective? “You should give me lower interest rates,” or, “Your client (friend), who is roughly in my age bracket and has a similar credit score, has this much interest. I’d like to have a similar interest rate to them.” 

The more you know, the better. 

…Or the Bank 

When in doubt, you’re going to have to ask your bank for lower interest rates. Persistence and politeness will get you far in this regard, but sometimes you’ve got to be willing to go if they do not make an offer. Having interest rates that fit your life situation is something customers deserve and if you make it clear that the current system is not working for you, do not hesitate to make that known. 

Want more tips to lower interest rates? 

While these tips are great to help you in the long term, you may need to pay off the interest rates in the short term. That’s what we are here for, because at Cigno, we offer short term cash advances up to $1000. Of course, you should only borrow as much as you need to, and as much as you can repay. But if that sounds like you, we encourage you to use our services. 

Contact us today to learn more about what we offer. 

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice – Moneysmart.gov.au.

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat