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Credit Cards Interest Rates and more…

December 5th, 2007 by Shenron

Todayâ€™s credit card interest rates are on the rise and it is not just the initial start rates. Late payments can skyrocket your interest rate as much as ten percent. That means if you miss even a single payment, or if you are late even once you could end up paying anywhere from twenty to thirty percent interest on your balance. Credit card companies are also not just going to lower it after a few months of making on time payments, it might take a year or more of making perfect payments to get your interest rate reduced.

The best way to avoid having an increase in interest rates on your credit cards is to make sure your payments are in on time. There are a number of ways that this can be accomplished. Many credit card companies are now offering online payments. These payments are usually posted the same day or next day depending on when you submit the payment. The process is quick and easy and it gives the company advance notice that your payment is already on the way.

Automatic debit or bill pay is also one of the easiest ways to make sure that your payment makes it into your credit card company on time. You specify the day, the amount, and the bank, bill pay service or in some cases, the credit card company itself will deduct the amount for you every month. There are some risks with this, such as not having enough funds or difficulty stopping the automatic payment if you have to adjust for an emergency situation.

Pay by phone is another option that can provide you with an easy way to make sure your payment are in on time and your interest rates stay as low as possible. These types of payments usually credit to your account immediately and are handled either though an automated system or through a customer service representative. It is important to note however, that with phone payments there may be a processing card of as much as ten dollars.

If you are someone who would rather mail their payments in, make sure to allow at least ten to fourteen days for your payment to reach the company. In many instances it will reach there in three to five business days however, the mail has been known to take longer. If you are mailing your payment and it hasnâ€™t appeared to have arrived and posted to your account prior to the due date giving the company a call and asking about it may help prevent a payment made late by the mail from harming your interest rate. In these cases, the company may use the postmark date to determine receipt of your payment.

Credit card interest rates have been steadily rising in past years. Make sure that your payments are in on time to avoid having a large increase in your cardâ€™s interest rate. By making payments online, through automatic bill pay, over the phone or by allowing enough time for mailed payments to be received and processed you can be sure you are paying the lowest interest rate possible on your balance.

These are all excellent ways to keep up with your credit card balance. Credit cards are both a blessing a curse. They can either help a person build a great financial future or they can help break down a personâ€™s future. The key is to think about using them effectively and responsibly. By using all of the readily available resources that are out there today, you should never have to worry about late payments again.

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