Using A Low Interest Credit Card To Handle Your Finances
Posted by Nick Niesen on October 29th, 2010
There is no question that a credit card has been a staple occupant of most wallets in America. You would rarely see long lines form in a cash only registry in groceries and other stores. Why use cash when credit cards are more convenient?
We all know the conveniences credit cards bring. We also know the pitfalls of abusing credit cards. But we just can't live without them. So what we all do is try to regulate our spending and discipline ourselves in flipping them out of our wallets and handing them over to a cashier.
We may have our different methods and ways in avoiding huge credit card bills but there is still one sure fire way to make sure that we don?t drown in credit card debt. It is common knowledge that if we only pay the minimum required amount to be paid in our monthly statement, we have to pay an interest on the remaining balance, which will be charged on your next bill.
So, it is but common sense that if the credit card company you subscribed to have high interest rates, then you are going top be charged more. So, the most common thing to do is to get a low interest credit card. Simple enough right? No argument there, it can be very simple, IF you will do your preparations right.
A lot of credit card companies claim to offer low interest rates, but there is more to them that meets the eye. What you need to do is to carefully scrutinize what is being said in the fine print. Check out how long the low interest rates are being offered. Do they cover all the charges you have made? Are they for balance transfers only? How long can you be able to enjoy the low interest rates? If you reach your credit limit and you only paid the minimum amount required for the month, would it still have low interest rates?
These are the questions that you need to straighten out to ensure that your low interest credit card is indeed what its name implies. If not, you may just end up worse than where you started with. So if there are indeed limitations, know these limitations. Measure out the advantages and disadvantages your previous and the new credit card have to offer.
If the new credit card does indeed promise better options, then do so, but make sure that you completely understand the restrictions and limitations and do your transactions before these limitations are set. So if the low interest rates expire in six months, make sure that you have fully paid all your balance by then.
Another way to ensure that you will be getting true low interest rates on your credit card or being approved for a low interest credit card is by having a good credit rating. Credit card companies most generally give people with good credit rating low interest credit cards because they know that these people are good payers. They pay their debts in time which means they are not likely to run out of them. Even if they make several purchases, they will surely pay the balance in time and in full.
High interest rates means paying a certain amount of money for something you didn?t even purchase nor enjoy. It?s a total waste of money. Bit with low interest credit cards, you get the full satisfaction of knowing that you get true value for your money without the hefty price tag.
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About the AuthorNick Niesen
Joined: April 29th, 2015
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