Home and Garden Chatter

Compare Credit Cards and Don’t Pay Interest Again

OK, lets get right to the point. Credit card companies don’t want you to compare credit card interest rates. They want to get you locked in with a card and have you make the minimum payments possible each month, because that is the way they make their money. However, if you wish to compare credit cards with alternative providers, you could find yourself saving thousands of dollars in interest during the course of it’s use.

You may not know that some credit card providers have a clause in their standard contract that states they can raise the amount of interest without warning if you miss a payment or even late in making payments? You may think you are on a great low interest rate credit card account, but if you are slow in making a payment, your rate may jump to 20% or higher overnight.

Obviously, if you have had this happen to you, the best thing to do is to transfer the outstanding amount for that account over to a new specialised balance transfer credit card account which can even have zero interest for the life of the transfer amount. This means you are paying nothing in interest as compared to the 20% or more you have been paying up till now.

You will not want to do this if you use your credit card for general everyday spending though, because these cards have a high amount of interest attached to any additional spending. And this is how the credit card provider will make money from you. If you want a card for regular spending such as groceries, you can reap some great rewards from certain credit card accounts that provide low interest for your everyday spending along with an interest free period, and also rewards according to the amount you have spent.

With any credit card you need to make sure you keep up with, at the very least, the minimum monthly repayment. If you use it regularly, it is recommended that you only spend what you already have in cash and can afford on the card, and pay this amount off fully each month. This way you still benefit from the rewards for spending, but you will not get behind and owe interest on top as well.