What’s Your Credit Card Interest Rate?
If you haven’t been reading those notices that come in your credit card statement, or if you haven’t looked on your statement for your credit card interest rate, you may be in for a rather unpleasant surprise.
Some credit card companies (Discover notable among them) are in the habit of periodically checking your credit report. They look for things like increased purchases or credit inquiries that result in a lower score. And then they use it as an excuse to jack up your interest rate. This is a somewhat cruel and disheartening practice for some, especially since it makes it extra difficult to pay down a balance.
So I repeat my mantra: If you use credit cards, pay the balance off each month. If you do make a large or emergency purchase, do what is necessary to ensure that it is paid off in two or three months (six months at the very outside).
Credit cards benefit when you carry a balance. And you can destroy the value of any rewards by paying interest on credit card balances.
Tags: credit-card-companies, credit-card-interest-rate, credit-cards, credit-report, get-out-of-debt, Personal Finance, personal finance blog, yielding wealthRelated Stories
POSTED IN: Credit, Debt Management, Family finances
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