How to Be Debt-Free with a Low Interest Credit Card

Here are great suggestions you can employ to avoid incurring a huge debt with your low-interest credit card.

Say NO to additional offers for low APR credit cards.

Although the credit card offers you might receive from various firms may carry very attractive rates and features, it doesn’t necessarily mean that you should take advantage of them. Always remember that managing more than two credit cards, at a time, has its disadvantages. First and foremost, you might get confused with your due dates. And if this happens, there’s a huge possibility that you’ll skip or miss out on your payments, which could then inflict damage to your credit history.

 

Moreover, handling several lines of credit raises your risk of incurring a huge financial obligation, which you may soon find very difficult to pay back. Hence, we advise you to heed the advice of experts and use at most two, low-interest credit cards, at a time.

Always pay your credit card bills in full.

Did you know that carrying credit card balance from one month to the next can cause your interest charges to rise? In fact, this can happen even if your current line of credit carries an extremely low rate of interest. So, if you wish to prevent your credit payments and interest charges from skyrocketing, it is highly-recommended that you submit not just prudent, but also complete payments to your credit card issuer.

Transfer the balance from your other credit cards to your low-APR account.

This is especially true if your other credit cards impose steep rates of interest and fees. Keep in mind that by consolidating or merging your credit card charges in just one account, it will be much easier for you to gradually pay off your dues. Furthermore, such step can help you generate huge savings on your interest payments, which you can eventually use for more urgent personal or household needs.

Check how long you can enjoy the low rate of interest on your credit card.

Always remember that most firms today feature extremely low introductory rates on the programs they offer to consumers. That way, they can entice more individuals to sign up for what they’re offering. However, such rates may only last for just about three to six months. And in time, they may suddenly shoot up in line with the changes in the Primary Rate.

So, to avoid having problems, later on, be ready to ask your card issuer how long you can enjoy the low rate of interest imposed on your card program. And if possible, try to lock it in your credit card account.

Use the additional features of your credit card, sparingly.

That’s because the low rate of interest may only apply to your credit card charges. And there might be other rates and fees that will be imposed on the add-on facilities of your line of credit, particularly on the balance transfer and cash advance transactions.

Hence, just to be safe, take out and review the fine print of your card program, from time to time. By doing so, you can check the rates and fees that may be imposed on your other transactions and you can reach a sound decision whether or not to push through with them.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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