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How you can lower your credit card interest instantly
The best way you can lower your credit card interest instantly is quite simple really, find another credit card provider that has a low balance transfer rate. This means you can cancel your current card and transfer your existing balance to your new credit card, so instead of paying your current 10% to 15% you can lower it significantly to 5% or less, sometimes even 0%. There are many providers who offer fantastic deals on the interest if you transfer to them so it pays to shop around to see who is offering the lowest interest on the balance transfer.
Be aware that doing a balance transfer does not mean that your interest is lowered forever, the balance transfer interest rate is different to the ongoing interest rate per annum (p.a.) (the interest rate you know of). So when you are looking at the different offers be sure to check both rates as there is no point transferring to a new card that has a much higher per annum interest rate than your current card because if you pay zero or very little back to the new card and the balance transfer offer period has ended then you'll end paying the higher per annum interest than your old card. For example your current card has a 12% p.a. interest rate then you transfer to a different provider with a 0% balance transfer rate for 6 months, so even if you don't pay anything back for 6 months you are paying zero interest on your balance. But the new provider's ongoing interest rate is 15% p.a. which is higher than your old 12% so if you haven't paid anything back in 6 months then your time is up and you are now paying 15% instead of 12% on the amount you owe, so the transfer was not worth it. If the new providers interest rate per annum is the simliar to your current providers say 12% and 12.5% and they are offering a very low balance transfer rate say 0% to 3% then it could be well worth your money to transfer, basically you are buying more time to pay back your balance.
Balance transfers are ideal for people who are in the position of owing a few thousand on their card and are not able to pay it off in the next few months but know they will be able to pay it off later on. Just by transferring to another provider you can save your money in the few months you are not able to pay it off. Note that the balance transfer interest exists only for a specified number of months before the interest changes to the normal per annum interest rate, so you should be aware of the number of months your new provider is giving you on the balance transfer rate. For example if you owe around $4000 on your credit card and your interst rate is 15% then this is about $50 per month you are paying in interest alone, if you transfer to a new provider with a zero interest balance transfer for 6 months and a 10% p.a. interest rate then you have bought yourself another 6 months were you don't have to pay any interest and then you will only be paying $34 per month interest on the $4000.
You can find a list of good balance transfer offers here
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