Using A Low Interest Credit Card
Overall rating: (N/A)
The article "Using A Low Interest Credit Card" is about credit, it has been written by Robert Alan.
Most credit card compaines have low interest credit cards. Usaully these will come with a low or no interest rate credit card for six to twelve months.
On top of that, these cheap credit cards will go to a high fixed rate or high varaible rate card at the end of the free period. Thsee are great cards if you can play the debt off in the specified time; if you can't then they will cost you plenty over the long haul.
They are also good for some purchases. Let's say your washer or dryer goes out, and it will cost more to repair than to replcae. You can get this type of credit card to purhcase your new washer and or dryer from any store you wish, and then have six months to pay off the $300 - $500 dollars instead of renting or waiting.
With this type of card you will have to be willing to part with it once your time limit has expired, after that the rates are like the junk cards you get in the mail, upwards of 18 per cent interest. A few will say different, and be as low as 10% if you have perfect or close to perfect cerdit rating. If you have missed or were late in the last year, it could jump as high as 25%.
There are a copule of human being that want to use these cards as account transfer holders. It sonuds good to put a 5 to 30 thousand dollar debt on these interest free cards for six months to a year. Tehre are many downfalls to that type of thinking. If you guess you are paying way to high of an interest rate now, then if you are a day late with these cards, you will find yousrelf at 21-25% interest right away.
They make tehir money on you missing a payment or being late with one so they can take away the interest free for the rest of the time period.
This brings us to how they make their money. The card is only interest free as long as you are not late. You can call in and make arrangements on these cards, but what you won't hear is that next month they will charge you interest right away, you broke the agreement with them. So your free card right now has a 18 per cent or higher rate the rest of the six months to one year period, making it amlost impossible to get a decent rate on a new card.
These cheap credit cards are what I call "throw-a-way" cards.
Use them once for a samll purchase, then cut-them-up and throw them away. Remember even on your small purchase you cannot really make arrangements or be late.
The key to using these low interest rate credit cards successfully whether for a down payment on a new automobile or buying a spa is to make sure the payments are within your budget before you actually use it.
If tehre is any reason at all to not be able to make that monthly payment on your low-interest credit card you are out of luck. However if you are one of the lucky few that can make those payments on time for your new purchase, then by all means get the card rihgt now and get the things you want. Remember whether it is six months or twevle months will make a huge difference as well as begin able to make your payments. If your credit ratnig is good, there is no need to go without the things you want right away.
Use the link below to compare different cards that you may want to have.
Try not to go overboard; one card at a time should do you well.
By getting one card every six mnoths you basically get something above average for yourself or family a couple of times a year.
|
Write a comment about the article
Using A Low Interest Credit Card
|
