by Shanna19 » Sun Nov 07, 2010 05:57:51 AM
People nowadays encounter credit cards that say they carry low interest but do these cards really deliver what it says? One has to be sure so as not get duped by advertisements alone. Advertisements can always say anything just to sell. Credit cards are a little tricky sometimes so it has to be really thought of and the card holder has to be sure that it carries low finance charges.
Lower Interest Cost: Credit card users pay more finance charges when there is increase in interest rates. Bear in mind that paying for finance charges makes it convenient for you to pay your incurred credit balance at a different time. It enables you to have a lower balance when payment comes.
Less Time for Balance Payments: If there’s a chance for you to pay more it can give you less time to pay your balance. Regardless of the existing interest rates, if you can afford to pay a certain amount more on the period of payment, it would allow you to pay your balances in lesser number of months than the usual length of time that you have preferred.
Lower Minimum Payments: Low interest credit cards also give you the chance of calculating minimum payment. Lower interest rate could mean that you’d only have to pay the minimum payment. It is best that a credit card user knows the existing interest rates before purchasing and his payment period. These things are important to know so as to have control on personal finances and controlling a person’s savings deposit. Minimum payments sometimes can cause people not to afford it if interest rates increase.
Learning to use the credit card calculator for your payments could be a plus. This will enable you to calculate from the payments that you will make and for you to see how interests, high or low, can affect your credit standing with regards to the length of payment for you to pay the balance and the total interest that you have paid.