Are Low Interest Credit Cards Really Low Interest?
Are Low Interest Credit Cards Really Low Interest?
Article by Esme Bean
The interest rate you pay – which is best calculated as an annual percentage rate – may not be the best way to determine if you have the most beneficial deal you can get. Most people are not familiar with the various ways finance charges are calculated which is part of the story when you are seeking low interest credit cards. Following is a list of the four most common methods of calculation regarding how finance charges are figured:
Calculation Methods
Average daily balance – The credit card company averages your daily balance. For example, if you charged a purchase of 0 on the 1st day of July and 0 on the 17th, your average daily balance would be 0. That number multiplied by approximately one-twelfth of your annual percentage rate (APR) equals your monthly finance charge. The company may calculate your interest on either a daily or monthly basis.Daily balance – The credit card company takes the actual balance you carry each day of your billing cycle and multiplies it by approximately 1/365th of your APR and then adds it together.Two Cycle Balance – This method of calculation is similar to an average daily balance except the daily average is based on your last two billing cycles, not just one. If you do not pay off your credit card in full one month, you will be hit with retroactive interest on your next bill.Previous Balance – The beginning and ending balance of your statement are shown. The finance charge is based on the outstanding balance when the billing cycle begins.
Other charges are also factored into the cost of your credit card. There are annual fees and late fees as well as other penalty fees to be considered based upon your method of bill paying and credit history. Awareness of your own payment style is important because if you know that you are occasionally late with your credit card payments – in spite of your best efforts to be timely – perhaps a card with a slightly higher interest rate but lower late fee might be a better deal for you.
Of course, the lower your interest rate, the more you will save on the finance charges that the company applies to your outstanding balance. Consequently, you should consider credit cards that offer you a low introductory rate – at least for the first six months. Read the fine print so you are aware of the change in interest rate when the introductory rate expires. You should also be aware if the company will make any changes other than the rate of interest. If you currently have a card with a bank that charges high interest rates, you can always transfer your balance to another bank with a lower rate.
Some credit card companies’ offer perks along with your card. Some of these rewards that are commonly included are:
Discounts on various goods and services.Frequent flier milesInsurance on auto rentals or on travel.Cash rebates on some purchases made with your card.Insurance on purchases made with your card.
Regardless of the type of credit card you choose, be sure to read the fine print and save all the change notifications sent to you by the bank. Some people consider this information sent with their credit cards to be junk mail, but be aware it is important financial information that may cause you penalties and affect your interest rate later on.
About the Author
Card Fusion has the information to help you decide which credit card is best for your situation. The Learning Center is an excellent resource when shopping for a credit card. Esme Bean has been researching and providing information related to the credit card industry for many years.
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Are Balance Transfer Credit Cards On the Way Out?
Are Balance Transfer Credit Cards On the Way Out?
Article by Jon Francis
Balance transfer credit cards are among the most popular products on the market today, but the finance columns have been hinting that they might have a limited life span, done in by their very popularity. If that’s true, then the word hasn’t got to the credit card companies. Far from being on the way out, there are more balance transfer credit cards on offer than there have been for years.
Granted, those offers have changed. The current crop include conditions that guarantee the issuing bank some benefit for taking on a transferred balance from another company. The earliest types of balance transfer cards generally offered 0% interest for a set period of time – usually between six months and one year. If the balance was paid off in that time, there was no interest to pay. There was also no interest to pay if the balance was transferred to another card. To circumvent those who shifted their balance from one card to another, the issuing companies began imposing conditions.
The current crop of balance transfer credit cards fall into a couple of different categories:
- those that offer a low interest rate on transferred balances for the life of the balance.- those that offer a 0% interest rate for a set amount of time – sometimes as much as a year.
Either of those types of balance transfer credit card may require that you make purchases on you new card on a regular basis in order to keep your introductory rate. The payments that you make on your will be applied to the balance transfer first. Until that is paid off, those purchases will collect interest at the standard rate.
When you apply for a balance transfer credit card, make it a point to compare all factors of the cards that you are considering – including the option of not moving you balance at all. The important comparison points are: – the introductory balance transfer interest rate- the length of time of the introductory rate- the new purchase rate that will apply to your credit card- balance transfer fees
Add up all the factors and weigh them side by side to decide which balance transfer credit card is the one that you want in your wallet. With the hugely fierce competition in the market place these days you’ll be able to find some amazing offers but be careful, unlike the old days you will be charged a fee for transferring your balance which is usually 2.5% to 3% of the balance.
About the Author
Jon Francis has been involved with finance for many years! With an in-depth knowledge of the balance transfer credit cards market and helps others get the best from a credit card.
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Loans for bad credit Georgia – Financial support for residents in Georgia
ready for bad credit Georgia – financial assistance to Georgia residents
Article
by Gloria Kim
People of Georgia will be difficult to get a loan on the day of bad credit. These loans are useful for making arrangements for cash all these people. You can use these funds for various purposes. The borrowers can take loans for bad credit in Georgia, the faster availability of online mode.
It helps, a table of a monetary nature apparent manually to your previous debts and also helps to increase your credit score on the scale of credit. You can receive a good sum of money to meet your urgent cash needs. But you can avoid late payment, the borrower to take loan for bad credit in Georgia to complete. These loans are unsecured loans best described as a period of little progress, the ritual for those who are made of dreadful exaggerated applause. Whether you are with arrears, defaults, arrears, unpaid bills from credit card, even bankruptcy is haunted, you ignore all these loans. Georgia residents can take full advantage of these resources to their best side. The two main strengths are the support of bad loans credit instant cash and only a simple device must be completed. Once the contract is completed your credit will be transferred directly into your bank account, and you have bad credit holders to change something and the same procedure is performed. The online mode is the best option for a borrower when the borrower is not required to follow different procedures and conditions. The borrower is required to complete an online-only device. The approval is faster and the borrower is not obliged to stand in long queues. Loans for bad credit in Georgia are useful for all those urgent cash. The borrower can take the loan from the online help. This funding can be used for the borrower may be used.About the Author
Gloria Kim, an expert in finance and author of the article linked payday loan, she wrote for the people in the region the United States and the United Kingdom, and the pain of payday loans easy with instant approval and recommend against the compensation before pay day and, like emergency loans cash advance revenge for bad credit situation within 24 hours.
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Negotiate your way to reduce credit card April!
Negotiate your way to reduce credit card APR
Articles by James Dimmitt
I
three credit card accounts I had for many years. The other night I was reconciling my monthly statements and noticed a significant difference in the APR (annual percentage rate) that I was paid on all three cards accounts.My first card “A” an APR of 8.9% has card ” B “has an APR of 9.9%, and the card” C “has an APR of 17.9%-Ouch! I knew I had to see what could I do against it “out of range” interest rate on the card “C”. So I held options.One some decisions would be transferred to or spend the rest of the card “C” to provide a new card with a low in April, it would be very easy to do, because I had received several pre-approved credit cards at the beginning of the week. They included “convenience checks” that I use to pay back this huge credit card April, decided to transfer the balance to a new Account.as against this option but could not because I really wanted to add another account in my credit profile. Your credit score can that “magic number” that your credit rating for traders established negatively by too much space accounts.So I decided to see the credit card companies “C” contact, which could be affected by it over the 17 , 9% in April, which seemed so out of proportion to my other two credit card accounts do. I reasoned it was the better of the two options before me, as I have found a relationship with this company, a relationship that many years on-time payments, which reflects positively in my credit profile included with the credit bureaus. I called the 800 number and spoke a very nice person. I explained the reason for my call, offered two other credit card companies interest me a lot more reasonable I would like so see what his company could offer me.I was not surprised when he answered that he could my current rate of 17.9% to 15.9% lower. Since the credit card companies with profits in the interest rate they charge I did not expect, offered the lowest rate or best right out. I am prepared to have to do some negotiating.And, so I reminded him that my account was good standing and has for many years. I had no late payments and more thanthe due.Again minimum payment, he informed me that the best he could offer a 15.9% rate that would was good to August 2003. So now I not only have no idea how I made a pretty good deal, but these new tariff a “promotional” rate would be! I remained calm and friendly, knowing that yelling at him or tell him what a “lousy” company he worked for would be counterproductive to my ultimate goal – a low APR and better for this account. I thaned him for his time, but told him that I do not feel it was a very good offer.And then passed the “magic”. He asked me if I would talk to an account manager, and that they might better help me. I thanked him for his time and assistance and was then to an account manager.I explained my dilemma to her and persuaded her that as a good customer I expected a much better price. They sympathized with me and then gave my account to their platinum status which carried an APR of 9.9% upgrade! In addition, the Platinum Card has had more benefits and no annual fee. They also assured me that it “contract rate” and one was not a promotional rate. I would always have the same account number so that I would not open a “new” account but simply upgrade my current account status.Next you reconcile your monthly statements to look closely at the various APR you pay. If you see a difference in the prices, pay notice to you, call your card issuers to negotiate a better price. My perseverance has paid off. Be persistent – it may pay for you!
About the Author
© 2005, http://www.yourfreecreditreportnow.comAuthor: James H. DimmittJames is the editor of “To Your Credit” a free weekly newsletter with a focus on managing your personal finances and credit. Subscribe to a free copy of your credit report when you visit: http://www.yourfreecreditreportnow.com
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