Interest rate credit cards

Whether you are dealing with student loans, car costs, or other credit cards, that 0 balance transfer can look awesome.

Oh brother, another credit card pitch. Do these things ever stop filling up the mailbox.

Well, the short answer is NO. In reality we all receive credit card pitches weekly or even daily for some of us.

They just won't stop vying for our business. The funny part is when it comes to balance transfers.

They are typically low interest rate credit cards. On the other hand, when it comes to purchases, they are commonly high.

Go figure! I'd say they are trying to lure you in.

Maybe you currently have a credit card with a horrible percentage rate and you'd like to transfer you balance and resolve the issue.

Well, here's your big chance.

Not only can you lower the APR, but suddenly it's 0. Well, for the first year anyway.

After that first 12 months are up, all bets are off. I've had a total of two credit cards in my life.

Both were MasterCard, and both hooked me with the low 0 APR on balance transfers.

I honestly wished this lasted for longer than a year.

Whether you're dealing with student loans, car costs, or other credit cards, that 0 balance transfer can look awesome.

Now, the question is will you pay the balance off before your year is up? Most people do not.

That's not the way the routine works and credit card companies count on it.

But, what about high interest rate credit cards? Who in the world goes for these?

I'll tell you exactly who. Young folks with no credit.

Teenagers and college students, who want a Banana Republic card, because they lack any decent amount of cash.

This is understandable. We've all been there. Well, most of us have been there anyway.

I can't speak on behalf of the trust fund kids. Why should you steer clear of high interest rate credit cards?

For the obvious reasons. The interest each month will kill you.

You probably intend on using the card regularly, because you don't have much spending money in the first place, and we both know you won't pay it off every month.

This is why you should avoid high interest rate credit cards for your life.

That 22 percent APR on purchases will bleed you dry.

Suddenly you have three grand on your card and the interest alone is too much for you to afford.

Take the path less chosen. Don't spend beyond your means.

Online resources and related articles about interest rate credit cards: Frontline: secret history of the credit card: eight things a credit card user should know. Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you're late on payments elsewhere -- such as on another credit card or on a phone, car, or house payment -- or simply because the bank feels you have taken on too much debt.

Glossary: Interest rate Interest is the "rent" paid to borrow money. The lender receives a compensation for foregoing other uses of their funds, including (for example) deferring their own consumption. The original amount lent is called the "principal," and the percentage of the principal which is paid/payable over a period of time is the "interest rate."

Credit card deals

Self-Finance

Learn from Home at Mc2elearning.com