Credit Card Interest Rate
Credit Card Rate
Since the credit card interest rate is one of the most important
factors when choosing a credit card, having a good understanding
of the different apr rates, becomes even more paramount.
A striking feature of any credit card advertisement is
always the credit card rate or the credit card APR. For many
people, it is just a case of comparing the credit card apr
before choosing a low interest rate credit card. This approach
however, is not always the most cost-effective way to go about
selecting the best credit card rate or product.
The credit rate or apr, represent the rate of interest the credit
card supplier will charge you, on any balance outstanding on your
credit card credit account. Interest payments are charged when
you do not make full payment of your balance when it becomes due
during the billing cycle.
For instance, if you choose to make the minimum payment or a
partial payment of your balance, you will be charged interest
based on both the credit card interest rate and the amount of your
outstanding balance.
The credit card interest rate or apr that is charged will have
been pre-agreed at the time you made your credit card application.
This rate of interest is referred to as either the credit card
intrest rate or credit card APR - (Annual Percentage Rate).
Credit card providers use this apr to calculate the monthly
credit card intrest rate and the interest on your credit card
account balance, in the event you should make only a minimum or
partial payment. This interest is then added to your balance.
If you continue to make only the minimum payment or a partial
payment each month, your balance is again calculated and the
monthly credit card interest rate is applied in order to work
out the new interest to be charged. This never ending spiral
of credit card interest rate continues to be applied to your
credit card account until such time as you clear the full
balance.
You can see how easy it is to accumulate credit card credit debt
from the recurring credit card intrest rate charges that are
applied to your credit card account from one billing cycle to
another. For this reason, credit card interest rate becomes
the most important factor when choosing a credit card. Being
aware of credit card interest rates and how they can rise will
help you see the danger in accumulating credit card debt.
Don't be shy about doing a comparison of credit cards and
reviewing the current rate of interest you're being charged.
To get the best credit card interest rate, do your homework by
shopping around.
If you find your current card is charging you too much, contact
your credit card issuer and politely request a lower interest
rate or point out the alternative of your switching to another
low interest rate credit card provider. This is all it will
usually take to get a lower rate. However, should you not be
successful with your present credit card supplier, simply do a
credit card balance transfer to another
card. Be sure to check and compare different credit card transfer
rate offers first though.
0 Credit Card/Interest-Free
Cards
You may well have had a number of pre-approved credit card
offers, each of which might seem a tempting proposition in its own right.
These temptations that urge you to apply within a specific timeframe, are often in the form of either a low credit card introductory rate, 0% credit card offers or even a 0 interest credit card for purchases and/or balance transfers. You and urging you to apply within a specific timeframe.
Before you accept credit card offers presented to you in this
way, take some time to research these products - as well as
shopping around. You will also need to clearly identify your
credit card credit objectives before you're in any position to
make a decision.
If for instance it is not your intention to clear your credit card
balance each month, then you're better off sourcing a cheap credit
card. The best credit card in this instance would be a product that
offer you both 0% interest on balance transfers
and purchases.
You should aim for a card that give you the longest possible grace
period (from the time of your purchase to the date you need to pay).
This can range anywhere from 50 - 59 days. Note however that
some of the cheapest credit card offers do not give this lengthy
interest-free period.
Irrespective of which credit card you choose, be warned that
there is no interest-free period if you use your card to
withdraw cash either by writing yourself a credit card cheque; or
take money from an ATM; or if you purchase foreign currency. You
will incur hefty credit card interest rate charges.
Finding Information On
0 Interest Credit Cards/Credit Card Interest Rates
You'll find there are numerous cards, offering a variety of
incentives and credit card interest rates. These will vary
from 0 interest credit cards, 0 balance transfer credit cards
to low interest credit card with typically
3, 6 or even 12 months interest free periods.
You will find these offers and the credit card interest rate
on the Internet, in newspapers and financial magazines. It is
adviseable that you go directly to the credit card company to
be sure you get the very latest information on their credit
card card credit products as well as the credit card interest
rate.
The content on this site is purely for information purposes only
and is not intended to replace your seeking professional financial
advice.
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