How To Avoid High Credit Card Interest Rate Charge?
There is a credit term call grace period – it’s a period within which you might pay your bill without being charged high credit card interest rate . Usually it’s a period of 25-30 days before interest kicks in. Recently, most credit card companies are eliminating this grace period and offering a low fixed interest rate instead. Now the question is – which one is superior between grace period and low fixed interest rate?
It will be a bit difficult to have one answer that will favour everybody. Some like paying their bills in full within the normal grace period. To this group of people the grace period will be better. It will be advisable for them to shop for grace period cards and refrain no-grace-period cards.
A few banks do charge interest from the day they process your charge slip when you use your card to get cash. If you normally pay your bill in full you still need to shop for card that offers very low interest rate plus grace period, if you are to refrain high credit card interest rate charges on your account. However, for card holders that usually carry a equilibrise apiece month, the low interest rate will be good for them. If ever you are in this group you can even shop for institutions that periodically offer cards with no fee for the first year.
Most issuing company often offers “premium” credit cards such as Premier VISA and “goldcards” . These are fancy cards that come with travel insurance benefit and extra endorsement when your card is stolen or lost. These institutions will rarely use the highly annual service fees which you will be subjected to as their marketing point. So you have to be cautious when dealing with these cards. There is no reason for paying such high service fees. As a matter of fact it did not really worth it if you can have a lower interest or grace period card.