How Will My Credit Card Balance Be Calculated

Category: Finance, Credit.

Maybe you re looking to get your first credit card or shopping around for a new one. What is the interest rate?

Before you lock yourself into a particular credit card make sure you get the answers to these questions first! Make sure you find out what the interest rate will be for the credit card you re considering. So find out this information up front. The lower your interest rate the better it is for you if there is a balance on your credit card. If the interest rate quoted is higher, keep looking for a credit card company that will give you a good rate. By the way, beware of teaser low introductory rates that a prospective creditor may offer you to sign up for their credit card. Of course, the key to getting a lower interest rate is your overall credit.

Make sure to ask them if you will continue to get this low rate for a long period of time and not for just a month or two. How will my credit card balance be calculated? You will find that if you get reeled into getting a credit card with a low introductory rate, your interest rate may increase significantly later! Most creditors use an average daily balance to arrive at the balance for your credit card. If I pay late on my credit card is there a charge and if so how much? This would include any new purchases charged to the credit card less payments and credits applied.

It is important to find out if your credit card company will charge you a late fee and if so how much? Some credit card companies may charge you a late fee even if your payment arrives the day the payment is due but the wrong time of the day when payments are posted. You could pay up to$ 20 or more in late fees if they are applied to your credit card balance. Your interest rate could also be increased if your payment is received late. Could you give me a better interest rate? This interest rate increase could be substantial if you carry a balance on your credit card. Find out if the credit card company will give you a better interest rate than the initial rate quoted.

Will I be charged more interest if I don t use my credit card? Let them know you ve been shopping around and will consider going with the company that provides you with the lowest interest rate. If you only want to use your credit card for emergencies or certain types of purchases and don t intend on using your card often, you ll need the answer to this question. If this is the case, you don t need this credit card. Some credit card companies may increase your interest rate, charge you a fee or cancel your credit card if you don t use their card very often or at all! Do your research before you apply for that credit card and make sure that this card is beneficial to you!

Remember there s lots of competition from prospective credit card companies for your business, make them earn it! If it isn t, then you don t need to apply for that particular credit card.

Read more...

These Fees Increase The Cost Of Credit Card Ownership - Felecia Moline's Finance and Credit blog:

Credit card companies associate various different fees with the credit card. A close scrutiny of the terms and conditions associated with the credit card will definitely make the credit card owner aware about them.

Your Credit Score Is Updated Regularly - Finance and Credit Articles:

Experian, Equifax and TransUnion. The basic idea behind reporting and tracking your credit history is to get an idea on how prompt and reliable a person is in repaying the loans.

Individual Credit Reporting Agencies Viz - Dionne Bodin's Finance and Credit blog:

Equifax, Experian and TransUnion: These three credit reporting agencies determine the credit worthiness of people in USA by making credit ratings for them.