Interest Rates On Credit Cards? Interest rates are one of the most important aspects of a credit card. Some times a credit card can be a boon or curse. If you run out of cash and you really want to make an important purchase, with your CC you can make purchases and pay later. Another interesting part of a reward CC is that you equally earn points or cashback when you make purchases with it.
However, if you used to carry a balance, you will have to wait for a very long time in order to pay off your debt, due to the heavy interest some Issuers give.
You see that CC has the good and bad side, to avoid the bad side, you should endeavour to pay off your debt on time to avoid unnecessary interest charges.
Interest Rates On Credit Cards
CC rates are is shown as Annual Percentage Rates (APR). It’s simply the fee paid for borrowing money. To find the APR of a card, go to the CC disclosure.
The interest rate applied to your balance is located on your statement.
However, some CC Issuer offers periods in which cardholders can pay off their balance in full and avoid paying interest. Any balance not paid within the grace period will be charged.
Some cards Issuers calculates their finance charge based on the daily credit card balance. That is the balance at the beginning of the billing cycle or the balance at the end of the billing cycle.
What Is A Good Interest Rate On A Credit Card
It’s very difficult to say what a good Interest rate is on CC because it depends on the lender and the credit score of the cardholder. Best interest rates are given to cardholders with a good or qualifying credit score.
Moreover, for you to find out the rate you qualify for, you need to know your current CC score and access the range of rates available for CC that requires that level score to apply.
What Is The Best Credit Card With The Lowest Interest Rate
Here is the list of best low-interest credit cards
- Discover It ® cash back
- Blue cash everyday card from American Express
- Citi Double Cash card
- Discover It Miles
- Bank of America ® cash rewards cc.
- Citi ® Diamond Preferred ® Card
- Citi Rewards Card
- American Express Cash magnet
The above are the best low-interest cc.
How To Avoid Paying Interest
With some credit card balances, you can avoid paying interest by paying off the full balance outlined on your CC statement monthly or before the due date. Though, it’s very difficult to avoid paying interest when it comes to cash advance and balance transfers. Reason being that cash advance and balance transfers APR doesn’t have a grace period. So the best way to avoid paying high-interest fees is to curtail your interest charges, you can achieve that by paying off your balance on time.
Types Of Interest Rate On Credit Cards
There are two major types of interest rates, the variable and fixed interest rates. Variable rates can change whenever the index rate changes. While Fixed rates cay only changes on some circumstances and the issuer of the card, will have to notify cardholders ahead of the changes on the rates.
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