The Finance Blogger

Credit card accounts are very easy to obtain these days. It seems like every other day I am receiving a new credit card application. I have been pre-approved and all I need to do is fill it in. Just send it to the company to receive a new credit card. The trouble with having many credit cards is that you have a lot of potential debt that could be charged to these credit cards. Credit rating agencies take a dim view of people with many credit cards. In fact they will lower their credit rating and this will impede them from being able to find low-interest personal loans, and low-interest mortgages. This is something that everyone should consider before they fill in all of these applications for low-interest credit cards.

Credit Card Low Interest – How Long

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.

Miss a Payment by One Day

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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