Compare Credit Cards and Don’t Pay Interest Again
February 24, 2009
Let’s get straight to the point. Credit card companies don’t want you to compare credit cards. They want to get you locked in with a card and have you make the minimum payments possible each month, because that is the way they make their money. But if you do compare credit cards with other providers, you can potentially save yourself thousands in interest over the space of the year.
Did you know that in most credit card contracts there is a clause that means your card provider can raise the amount of interest you are paying if you simply miss or are slightly late with only one payment? You may think you are on a great low interest rate credit card plan, but if you are slow in making a payment, your rate may jump to 20% or higher overnight.
Now if you have had this happen to you, one of the best things you can do is transfer the balance over to a new balance transfer credit card account, which could have a 0% interest rate for the life of the transferred amount. What this means is that you can be paying 0% interest instead of the 20% or even more you might have been paying up until now.
You will not want to do this if you use your credit card for general everyday spending though, because these cards have a high amount of interest attached to any additional spending. This is where the provider makes it’s money from you. If you need a card for buying groceries and other shopping there are some great rewards cards that have low interest for everyday spending often with quite a long interest free period after the initial spend and rewards associated with the amount you spend.
With any credit card you need to make sure you keep up with, at the very least, the minimum monthly repayment. If you use it regularly, it is recommended that you only spend what you already have in cash and can afford on the card, and pay this amount off fully each month. You can still reap the rewards and you won’t get behind and have to start paying interest.
Tags: credit repair
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