Credit Card Interest Rates

What Credit Card Interest Rate Will You be Paying ?

Credit card interest rates can vary considerably. There is every possibility you may be paying a higher interest rate than you expected.

Let us have a look at the common credit cards offered with Premium Pricing, Standard Pricing, and Sub-Standard Pricing. The Premium credit card interest rate would be the lowest interest rate listed. This APR will be offered only to applicants who have excellent credit scores.

Those applicants with lower credit scores will not be able to qualify for this rate.  Depending on the applicant’s credit score they may not be able to qualify for the card at all.  This will depend entirely on their credit history, as well as on the credit card issuer.

Standard Pricing is priced in between the Premium Pricing and the Sub-Standard Pricing. The average Standard APR applies only to customers with a good or better than average credit score. Applicants who have an average to fair credit score may qualify for the Sub-Standard Pricing.

The credit card issuer will not be able to determine the applicant’s pricing until the application process has been completed.  The applicant’s credit history will need to be verified and taken into consideration. The following are a few tips that consumers can follow in order to avoid any unpleasant surprises.

Review Credit Card Interest Rates and Terms:

Immediately upon receiving your credit card, you should review the paperwork thoroughly. This way, you will understand the annual percentage rates, as well as any fees that you may be charged. You should always read the Terms and Conditions. If you find the rate is not what you were expecting, you will need to decide whether to accept the terms or decide not to use the credit card.

Apply for Another Credit Card:

It is also advisable to apply for more than one credit card. This way you can pick the one with the lowest interest for those instances in which you will be carrying a balance and use the higher interest card only for things you will be paying off as soon as the bill arrives. However, be advised it is not a good practice to apply for more than one or two cards in any 90-day period as this has the potential to lower your credit score.

Make Payments in Plenty of Time:

You must always be prompt on making your monthly bill payments for your credit cards. If you are able to pay your account in full each month, you will find that in most cases the interest rate will not matter at all, as you will not pay interest on the balance so long as it is paid in full by the due date.

Some credit cards charge interest from the date of purchase. Be sure to read the fine print so you will be aware of your credit card issuer’s policies. Balance transfers, of course, will always accrue interest from the date the balance transfer was initiated.

Paying 0% Interest is Even Better:

Applying for a credit card with a 0% introductory APR can be a great help in avoiding paying a lot of interest over the next several months. New cardholders can enjoy an offer of 0% which can last anywhere from 6 months to as long as 18 to 24 months.

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