Are you playing your cards right? If used with wisdom, your credit card can be the answer to some small cash flow crises. If you pay back the amount you borrow before the monthly typical Annual Percentage Rate (APR) kicks in, you can neatly dodge interest charges. The amount of time it takes for the interest charge or typical APR to kick in varies from card to card. Typically it ranges from 28 days to 56 days.
When they say free, do they mean free? Some credit card providers offer a 0% rate for up to 12 months. If not careful, you may get stung with a high typical rate after the introductory period. Plus, the 0% offer may apply only to balance transfers. So, when using your new 0% credit card, you could be in for a nasty surprise when the bill arrives.
Monitoring repayment strategy If you’ve accumulated debt across several credit cards, you may be finding it hard to keep track of all the repayments you need to make. Plus, if you’re only making minimum monthly repayments, you’re fighting a losing battle. The interest you accumulate could eventually treble the amount you originally borrowed, making it even harder to clear your debt. Are there other choices for cheaper credit that could assist; consider a line of credit, remortgage or balance transfer to a 0% interest card.
Is a balance transfer right for you? That’s where balance transfers can help. By transferring your debt onto a low interest credit card, you’ll cut the amount of interest you pay back. Plus, keeping track of your payments will be much easier. Look out for a card that offers a low interest for the longest possible period on CompareVillage.com
Get your best rate credit card Our credit card calculator uses the latest rates directly, and gives you accurate and impartial results based on your needs. Start your credit card comparison now using our free service to get the best credit card deal for you.