img
img
MyMoneyHelp home
Sign up for our newsletter!
Name:
Email:

corner cor cor
cor
MyMoneyHelp
Credit Reports
Personal Loans
Mortgages
Insurance
Debt Help
Credit Cards
Banking
Education Center
cor
cor cor co
corner cor cor
cor
Education Center
Banking
Credit Cards
Credit Reports
Debt Help
Insurance
Mortgages
Personal Loans
Glossary
cor
cor cor co
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit card interest rates
Credit Card Interest Rates:
Staying on the Ball

If you have a credit card which has an existing balance, do you know how much you're paying in credit card interest rates?

If you don’t know your rates, you could be paying out more money each month than you need to for the privilege of having a credit card. That’s why it pays to understand as much as you can about the interest rates that apply to your card, so you can decide whether or not you need to move the balance elsewhere.

Take a look at the following points to see whether your credit card’s interest rates shape up—or whether you need to ship out and go elsewhere.

1. Consider different interest rates for different parts of your balance.

Credit card companies will automatically trumpet their lowest interest rates when promoting their card. For example, they might have 0% rates for balance transfers for six months, but a hefty 25.9% interest rate on purchases.

Consider what your balance will be made up of before opting for a specific credit card. If you already have a credit card, now might be a good time to see how you can reduce the amount of interest you are paying.

2. Know the terms of your 0% interest rate.

Credit card interest rates can vary enormously, but we have all seen the 0% interest rates on balance transfers that credit card companies offer to get you as customers. This doesn’t automatically mean you should switch your existing balance to the first 0% deal you see however.

Firstly, check out the length of time those credit card interest rates will last. Anywhere from six to twelve months is usual. You will occasionally see up to fifteen months, but this is getting far less common. If you know there is a chance you won’t pay off the whole lot before your 0% deal runs out, then you need to narrow your choice down to credit cards that offer lower interest rates even after the initial interest free period is over.

You might even find that you are better off sticking with a card that has a regular low interest rate, rather than swapping to a 0% card, and having to pay another set of transfer fees in six months time when your deal ends.

3. Make sure your habits match the interest rates attached to your credt card..

Interest rates won’t be your main concern if you always clear the balance on your credit card, but you should consider how you use it to ensure you choose the best card for your needs.

Taking cash out of an ATM with a credit card is never a good idea, as you are usually charged a hefty interest rate on these transactions from the moment the cash comes out of the machine. If you can steer clear of doing this, you only have balance transfers, check payments, and purchases to worry about.

Don’t forget that if you transfer a balance under 0% interest rates, you will still have to pay interest on any purchases you make that you don’t pay off when the bill comes in, so if you aren’t likely to clear your balance look for credit card interest rates that are kept low for purchases. As a rule, it’s best to keep cards with balances on them separate from cards you use strictly for purchases that you’re able to pay off, or else your minimum monthly payments will go towards paying off your account balance at the lower interest rate, while your high interest rate purchases add up.

It’s really a question of thinking about your normal habits when it comes to using credit cards, and finding the right one for your situation. Interest rates can be hefty, but if you know what you use your card for and you know what to avoid, you might just get away with paying no interest at all.

Compare credit card providers

 
 
 
 
 
 
 
banner

 
 
© MyMoneyHelp.com. All Rights Reserved.    Sitemap | Newsletter | About | Contact | Terms of Use | Privacy | Online Coupon Codes

Valid XHTML 1.0 Transitional

img