Credit Cards – pay off interest rates

October 9, 2011

Reasons to Compare Credit Card Interest rates

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 4:32 am


Reasons to Compare Credit Card Interest rates

Isn’t it incomprehensible how a number of people don’t even compare interest rates of credit cards before selecting one? And what about people who do but don’t really use the info they learned to determine what credit card to apply for? Well, if you are one of these people, you should definitely ask yourself, why you choose to go in that direction. And if you actually do the math, you’ll find out that you will be throwing away a lot of money just paying off your credit card interest charges. So don’t be in a hurry to apply for credit cards or to respond to engaging credit card marketing promotions. Do your credit card comparison study first, and most importantly, only send your applications for credit cards you have carefully examined will give you a fair deal.

It is also a fact that that credit card rates vary across different economies in the world; and even in the same country, interest rates can also vary between each bank and between each credit card company. Like in the United States for instance, credit card charges are from 7% to around 39%, while in South Africa credit card rates can range from 9%  to over 35%. Of course, countries with the same economic conditions may also have closely similar interest rates.

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Clearly, what is the right credit card depends on the customers themselves and what kind of credit card will offer them the most advantages based on their particular requirements. Would a rewards card benefit him or is he better off with a low interest rate card? But for the purposes of this article, only credit card interest rates for banks in South Africa will be compared. To help start your credit card comparison survey, we will list down the differences in credit card rates in South Africa .

In 2007, Virgin Money introduced its line of MasterCard credit cards which charged customers no annual fees, no transaction fees, and no fees to swipe and use their internet banking services. With Virgin Money’s MasterCard, clients earn an interest rate of 9% per annum for their positive balance on their credit cards. Virgin Money also extended to their clients a 25 day grace period in which they can pay off their credit cards without interest charges, but after that period, they get charged only 20% p.a. Virgin Money’s interest rates are also linked to the South African Reserve Bank’s repo rate.

In addition, based on the info on rates when we researched this article, Nedcor charges an interest rate of around 31.5% p.a. While First National Bank or FNB charges an interest rate of 31% for regular cards and 29.5% for its gold cards. Moreover, Barclaycard Visa Credit Card and Barclaycard Prime Visa Credit Card charge between 13.9 to 17.5% and 12.4 to 17.5% respectively per year. Also with Barclaycard, clients are given access to a convenient payment schedule that allows them to pay for purchases in installments of 6, 12, 18, 24, 36 or 48 months; and up to 57 days of zero interest credit; ATM full service (withdrawals, deposits, balance enquiries and mini statements) comprehensive monthly statements and etc.

Based on this discussion, it can well be concluded that Barclaycard offers the best interest rate on credit cards for their customers but, there is still the need to look at other credit card features before deciding.There are still other key factors to examine such as bank fees and charges, and what card pays the highest credit interest if you have a positive balance on your credit card. But for now Barclaycard seems to offer the best credit card to South Africans when it comes to interest rate charges



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October 4, 2011

How To Maintain Your Credit Card Interest Rate At 0%

Filed under: Credit Card Interest Rate — Tags: , , , , — admin @ 4:34 am

How To Maintain Your Credit Card Interest Rate At 0%

We’ve all been tempted by 0% credit card interest rate offers. These offers are usually for short periods of three to 12 months and there are usually conditions attached. For example, the preferential rate may apply to balance transfers, but not to cash withdrawals. The low interest rate may not apply to credit card cheques or purchases either.

People who are carrying a large debt will want to make the most of 0% interest rate offers. Here’s how to keep your credit card interest rate at 0%.

Researching 0% Credit Card Deals

First of all, it is best to research the credit card thoroughly. Consumers need to find out:
- what period the 0% interest rate is for
- whether it is for balance transfers only
- whether it applies to other spending on the card
- what the rate is for cash withdrawals or credit card cheques
- whether there is a balance transfer fee
- what other incentives there are for using the card

Answering these questions will help consumers to decide which 0% credit card is right for them. It is especially important to pay attention to the period that the incentive offer lasts for. To keep paying 0% interest, consumers will need to apply for a new 0% credit card a month to six weeks before the old offer runs out. This leaves time to get the card, activate it and transfer the balance without incurring any additional fees from the current credit card company.

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Rate Surfing Benefits

Moving from card to card, or rate surfing, is a common way of keeping interest rates low and paying off as much of a debt as possible. Using a 0% card means that any money paid is reducing the outstanding debt rather than paying interest. This is good news for consumers’ long term financial stability.

Of course, there’s no guarantee that consumers will be able to get another card. This will depend on their credit profile. The best way to maintain a good credit profile is to have some credit card debt (but not too much) and to make all payments on time. This will show credit card companies that you are a good credit risk.

Watch Out For Balance Transfer Fees

Credit card companies do not like credit card tarts, another term for rate surfers, because they lose hundreds of thousands of pounds’ worth of income that they would normally gain from interest. As a result, many credit card companies take their money up front by charging a balance transfer fee of around 2% of the balance transferred. Even with this fee, savvy consumers should be able to shop around for the best rates and pay much less interest than they would normally have done.

In addition to the incentive of a 0% interest rate, consumers can also benefit from other rewards. These include points that can be used for travel, earning vouchers, cash back and charitable contributions. This means that consumers can reduce their outstanding debt and gain a reward as well.

September 29, 2011

13-Year High for Credit Card Interest Rates

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 4:35 am


13-Year High for Credit Card Interest Rates

Consumer misery shows no sign of letting up in 2011, with credit card interest rates hitting a 13-year high, according to research carried out by price comparison site moneyfacts.co.uk. The average credit card charge now stands at 18.9%, over 4% higher than the low rates seen in 2006.

The previous record was back in February 1998, when interest rates were at 7.25% and card lending rates peaked at 21.1%. From that point, increased competition among credit providers at the end of the 1990s saw the rates start to fall, reaching their lowest point of 14.8% in February 2006.

Moneyfacts blames the economic downturn for the high cost of credit; with unstable economic conditions and rising unemployment causing lenders to factor in an increased risk of default when setting their rates.

Another consequence of the financial downturn is that it is becoming increasingly difficult for the hard-pressed consumer to switch to alternative credit providers in search of a better deal. There are some competitive offers for balance transfers and introductory purchases, but as lenders become more selective over who is eligible for these deals, not everyone can get the good rates.

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Considering that 18.9% is the AVERAGE interest rate, some customers are being hit with even higher charges. For example, on a credit card debt of £5000.00, a customer repaying only the minimum monthly amount will now repay an additional £2360.00 over the life of the loan.

Cardholders who want to avoid the higher interest rates are advised to switch to one of the % balance transfer cards currently available. After paying an initial fee, they can transfer their existing equilibrating to the new card and escape pay any interest for a while. Price comparison websites like moneyfacts and moneysaveingexpert can help you find the best deals.

European borrowers can at least take some comfort from new consumer protection legislation drawn up by the EU Consumer Credit Directive (CCD), which came into effect on February 1 2011. The new rules will strengthen existing consumer rights, including introducing the right to make partial early repayments. Potentially the biggest consumer benefit is the new ‘right of withdrawal’, or the right to pull out an agreement within 14 days. Previously telephone and internet buyers previously had greater legal protection, as these transactions were covered by the 7 day ‘cooling-off period’ provided by distance selling rules. The new EU Directives gives similar protection to consumers when the enter into a credit agreement in person, and extends the old ‘cooling-off’ period for an additional week.





September 20, 2011

Q&A: How can I lower my (wifes) credit card interest rate?

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 8:32 pm


Question by Face on Fire: How can I lower my (wifes) credit card interest rate?
My wife opened up a few credit cards that I was not aware of and they have really high rates, I can not afford to pay them cancelled flop now, so how can I get a lower interest rate or what are some tips to deal with this?No need to comment on my wife, I am furious enough as it is.

Best answer:

Answer by Tim
You probably won;t be able to get them to lower the rates. Just cancel the cards and pay as much as possible towards them each month.



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September 19, 2011

What is the lowest interest rate credit card that I can apply for?

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 4:31 am


Question by Carbonbased Lifeform: What is the lowest interest rate credit card that I can apply for?
I currently have a 17.99% APR credit card. I’ve had it for almost a year now. 11 months to be exact. I want to go to a lower interest rate card. Does anyone know a full low interest rate card?

Best answer:

Answer by answermonkey
It all depends on your score, but give a try to Washington Mutual, Capital One or Orchard Bank. All recently gave me a % APR for 12 months. With Washington Mutual it helps if you have a checking/savings account with them, since then you can pay the stuff immediately online.



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September 9, 2011

Is this a good credit card interest rate?

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 4:29 am


Question by zyllee: Is this a good credit card interest rate?
Is 11.24% considered a good credit card interest rate? Is it possible to get the company to lower it (without them laughing in your ear) or is this as good as it gets without rolling to a card with a low introductory rate?thanksthis is not a new card and I have excellent credit scoreI already have excellent credit ratings.

Best answer:

Answer by C.W.
11% is the avg for a new card.. do good, you can get them to lower it.. a lot of places start at 18-20%



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August 31, 2011

How to Reduce Credit Card Interest Rates

Filed under: Credit Card Interest Rate — Tags: , , , , — admin @ 8:33 pm


How to Reduce Credit Card Interest Rates

There are several steps you can do on your own to reduce credit card interest rates. By being wise about how much you pay on each credit card, you can earn lower interest rates which can save you hundreds of dollars as you continue to pay off your debt.

If you decide that your interest rates are too high, you could directly ask the creditors to lower you interest rates. Your creditors will only be willing to do this if you have a good history with them and have demonstrated financial strength. This requires that you not have made late or missed payments and have paid more than the minimum balance due.

If you do not think that the creditor will be willing to give on your interest rate, there are steps you can take to convince them too. First, determine how much you are able to pay on your credit cards each month. Choose one card to concentrate on that has the highest interest rate, and put the balance of what you can pay towards it after you already allocate to each of the other cards the minimum payment plus five dollars. Adding the additional five dollars to each car will keep the credit card companies from penalizing you for being a “slow pay.” By focusing the majority of your allotted money towards the one credit card, you will be aggressively paying down the money that carries the highest interest.

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Once you have sharply payed on this card for four to six months, contact the creditor and request a specific interest rate that is lower. Now that you have demonstrated that you have the fiscal capability of paying more than they conceived, prompt them of this and offers you have had to transfer your balances to lower rate cards. You should be capable to lower your interest rate three or four percent which can salvage you importantly.

Once you have done this successfully, you can choose to focus on another card to get that interest rate lower. Or, you can work on completely paying off the original card. By following this type of pattern, you will allow yourself to start to escape debt.

The above strategy assumes that you have resources to be able to pay more than the minimum payments on your cards. If this is not the case, you will have to find another way to reduce credit card interest rates. One way that might be beneficial to you is a debt management plan through a credit counselor. Creditors are much more willing to lower interest rates on these types of plans when they see you are serious about getting out of debt. Contact a reputable credit counselor if you would like to learn more.



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August 25, 2011

How Credit Card Interest Rate Levels Affect You

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 4:31 am


How Credit Card Interest Rate Levels Affect You

If you ask credit card holders the single thing they look for in choosing the right card you would probably get a variety of answers – from the cuteness of the picture on the card right through to the credit card Interest rate level!

I wish I was exaggerating by saying that some people choose a card based on the beautiful decoration on the front, but I don’t think I am. Others will choose a card because it gives them reward points in their favourite store or frequent flyer points for their favourite airline. While these latter features may be “nice to have” anyone who is being financially responsible won’t choose a credit card based upon them alone, unless other more important factors are also in their favour.

To explain, the credit card interest rate affects every single purchase you make because a rate of interest will be applied to it that you will have to pay in addition to the cost of the purchase, unless you make sure that you always pay off the full debt within an interest free period that is provided. This can be 18% or 20% for example, so it can be a sizable sum and it’s how the credit card issuers make a lot of their funds. If you are not looking at this, but have your eyes “turned” by the frequent flyer points you can accumulate for Qantas, then you are missing the bigger picture.

I mentioned there an interest free period – an important feature for many people who budget carefully and maybe even have a linked credit card account to their main bank account, allowing them to easily settle the credit card debt each month on time without paying interest.

Another important factor might be a low interest balance transfer rate. If you are wanting to consolidate your debts by paying off some high interest ones using a new card with a low interest balance transfer rate, then it can save you hundreds of dollars in interest payments. In this case you will want a card with this facility as its primary feature and the APR, interest-free period, cash advance rate or annual fee may not be important to you. However, with these cards you need to bear in mind that if you don’t pay off the balance transfer amount within the specified period (normally 6 or 12 months) new and possibly high interest rates will normally kick in, so beware! They can be something of a trap unless you are disciplined and responsible.





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August 16, 2011

Credit Card Interest Rates Can Vary Considerably

Filed under: Credit Card Interest Rate — Tags: , , , , , — admin @ 8:30 pm


Credit Card Interest Rates Can Vary Considerably

Credit card interest rates are how lenders make their money, but that amount of money usually depends on the card holder. Interest rates have been going down in past few weeks and are likely to be seeing even more changes in the next few months, they are falling to record lows as lenders try to get into one of the few remaining areas for growth in the credit industry. Credit card interest rates are usually tied to the US Prime Rate; the interest rate set nation-wide by the Federal Reserve Board.

Interest

Interest can vary considerably from lender to lender, and the rate on a particular card may jump drastically if a consumer is late with a single payment or goes over their limit, and sometimes if the bank decides to raise its revenue. Interest is usually displayed as APR, which stands for “Annual Percentage Rate”. It is law that credit card interest rates must be displayed on the product so that the consumer knows the rate they are going to be paying, thus enabling them the chance to compare offers. Interest rates, high fees, and increasing minimum payments have many consumers feeling the credit crunch of 2008. If you have been making timely payments to your account (for several months) and you don’t usually max out your available credit, you can usually negotiate with the bank for a lower rate.

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Online

Searching online is a great way to help find companies that have the best rates. If you do an internet search you can also find a variety of APR calculators which can help you to figure the credit card interest rate re-payment totals. If you are comparing credit cards on the internet, you should always find the web page link that contains the financial disclosure information and a most likely a chart that lists the APR along with other fees and charges that might be associated with the product. There are also options for those with a bad credit history other than a standard unsecured card such as pre-approved credit cards, but the interest on these types of products are usually a lot higher.

Notes Of Interest

Obama voted “NO” on the Dayton Amendment to the 2005 bankruptcy-bill that would freeze credit card interest rates at no higher than 30 percent.

India’s APR’s appear to be the lowest while Brazil has the some of the highest credit card interest rates around.

Most rates range from 10-20 percent APR, although some cards can go as high as 30 percent for consumers with a bad credit history.



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August 6, 2011

Will the credit card interest rate increases happening negatively effect my credit score?

Filed under: Credit Card Interest Rate — Tags: , , , , , , , , — admin @ 8:29 pm


Question by sunny5_30: Will the credit card interest rate increases happening negatively effect my credit score?
The increase in my credit card interest rates are not due to anything on my part, but will it make my credit tally go down? I know it used to be that if you defaulted, failed to make a payment, were late, or went over the limit they would report it to the credit agencies and your credit would go down. But this time they are all going up, to no fault of mine. (Thanks Gov!!) Any ideas?

Best answer:

Answer by the tax lady
If you can pay the bill, no.If you can’t pay the bill, yes.



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