How to Guarantee You Get the Lowest Interest Rate on Your Credit Card
Posted on 25. Feb, 2009 by admin in Credit Cards
Many consumers underestimate the difference between five to ten percent of an interest rate for their credit card. The difference of these minor proportions may not seem significant until it comes time to calculate the interest for a consumer that intends to carry a balance on the credit card. There are many things that you can do to ensure that you obtain the best interest rate for your credit card.
Keep Your Credit Rating High. Ensuring that you maintain your credit rating is the first step to keeping as low of a rate as possible on the credit card. Be sure to make all payments on time and keep a low balance to credit limit ratio to make the most of the credit score. A high rating on your credit score will entitle you to the best interest rates possible and the top tier of the credit card company.
Pay an Annual Fee. Considering a payment of an annual fee could mean the difference of up to ten percent for a credit card interest rate. Be sure to ask about the different programs which are available through the credit card company, to ensure that you get the lowest possible rate. Consider if the annual fee will be less than the credit card interest rate and finance charges that will be accumulated throughout the year.
Don’t Miss Credit Card Payments. Once the consumer has missed a credit card payment, the credit card company is liable to increase the monthly payment by increasing the interest rate. Be careful with missed payment and late payments, as they can cost you more than just the fee associated with these types of payments.