Lowest credit card rates we have seen include 0% for the initial 2 to 6 months when you transfer money from another credit card. In addition they may also give you an initial rate of something like 5 to 10%, for the first six months then the remaining balances will migrate to a normal credit card interest-rate which will be in the range of 21%.
They eventually catch up to you and even though they start with the lowest credit card rates available the interest-rate will migrate to the normal credit card rate of 21%. This is just a marketing gimmick to get you to transfer your money to a new credit card. One of the dangers of having many credit cards is that from a credit rating perspective this will lower your credit rating.
It will make it more difficult for you to find low interest personal loans, or mortgages or free refinancing mortgages for your home. Always maintain your credit rating at the highest possible to avoid penalties associated with finding personal loans at some future point.
Remember to always pay your monthly bill on the balance due date. If you do not pay the total balance on your credit card by the due date, the interest-rate that the credit card charges will kick in and it will be charged from the date you initially charged items to your credit card for that billing period.
This can be a surprisingly large amount particularly if you have a high level of credit on your credit card. If you can not pay the balance on the due date try to use a personal loan or a powerline credit account to pay the balance. At least it will be at a lower interest rate. Never miss a payment, since this will directly impact your credit rating!
For more posts about dealing with credit card interest rates, click here.
Bad debt will not just disappear. You have to take some specific action in your…
When couples retire together there are many issues they have to figure out how to…
Many retirees assume that life will be grand after they retire. They will have lots…
Consumers love to talk about the stocks that have increased in value exponentially. Very few…
Before we answer the question, how do I avoid probate, we should really define what…
Credit utilization is a relatively new term that was initiated because many consumers were being…
View Comments
If you're educated (or seeking an education) you
will probably find a ton of opportunity in a small town. When job offers do
come and I'll admit, some companies may fear hiring you because they fear a former owner being an employee, negotiate the best salary you can along with the best benefits you can for you and your family.
Before you do this, examine the publication online
to ensure that its website is user friendly.