Low low interest credit card accounts do not stay at low interest rates for any length of time. Most low interest credit cards have a grace period, where the interest is in fact low for unpaid balances. Once this grace period is over, the interest rate reverts to the typical 21% range for most credit cards. If you still have unpaid balances at this time the interest will be much larger. Always try to pay your monthly balance in total on the due date each month.
Pay your monthly bill on the due date to avoid any interest charges at all. Even if you pay all of your accounts on the due date less even one dollar, this will trigger interest charges on the full amount that you hold on your credit card. Even a small mistake where you fail to pay the total amount will cause this interest-rate to be charged. It is very important to make sure that the due date is met as well.
For example if you missed the due date by even one day, interest will be charged. You will pay interest on the full unpaid balance from the date the amounts were charged to the card until you fully pay the remaining balance. Any new charges will also be charged to the credit card and will be charged interest as well. This is how they make their millions of dollars every month on unpaid balances from customers.
Always make sure you have sufficient money in your bank account to pay the monthly bill for your credit card account. Pay it in total to avoid interest charges. Pay it in total even if you have to take a personal loan from the bank at 5% or 6% range. This would be better than not paying the credit card balance at the end of the month.
For more ideas about what to do about credit card interest rates, click here.
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