You may feel like you don’t have a whole lot of choices when it comes to credit cards. When you have bad credit, it’s tempting to accept - Finish Reading →
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For the past several years, credit card companies have been tightening their credit requirements. This is in response to high delinquency rates and new government-imposed restrictions, like - Finish Reading →
Improving bad credit can be challenging. In general, the best way to improve a low credit score is to find a way to increase your debt to - Finish Reading →
Credit card companies love to offer low introductory rates to interest you in applying for their credit cards. The best deals of all, of course, are those offering 0% interest for an extended period of time. You can check out best credit card services by surfing this website
It is definitely hard to resist that kind of offer, especially if you are currently paying high interest rates.The offered introductory rates normally vary anywhere from 0% to 3.99% and the length of time for the introductory offer normally varies from 6 months to 12 months and in some cases may even be as long as 18 months.
Applying for a credit card offering a low introductory rate or no interest at all sounds like a great idea. How could it possibly not be a good idea?If you have a plan in place and stick to it.. a 0% interest credit card can definitely save you a lot of money. The biggest problem that occurs is that most people do not have the discipline to stick to their original plan and get the card paid off before the low introductory period expires.
Once the introductory period has expired, interest will be computed each month on your remaining credit card balance. The payment is now higher, and only a portion of the payment is going toward the principal. In most cases the largest part of the payment is going to pay interest and only a small part of the payment is actually going toward paying off the principal balance.
The people who benefit the most from these offers are either consumers who will be making a large purchase and would like to have an extended period to pay it off with no interest.. or those who have a high interest rate on another card and would like to transfer the balance to the 0% interest card so they can get the balance paid down faster.
Also.. you need to remember.. if you fail to make your payments on time your low introductory interest rate will come to an abrupt end and the go-to interest rate will go into effect. The go-to rate on your credit card is determined by your credit score.