Best Credit Card Offers specially for you

About Us  |  Contact Us  |  Articles  |  News  |  Tips  |   Tools
Credit Cards' Rates Changed Top News about Credit Cards!
2007-02-16 07:11:23

With best credit card deals, you are protected from financial failure

Among the numerous methods of saving a credit card deal from bankruptcy or repairing your current credit score there is one that is imposed as an urgent measure by banks and credit card companies. You come to notice it when your credit card deal becomes more expensive for you as a result of its interest rate increased.

You might be a diligent and responsible credit consumer, managing your credit card, following the main principles and rules of maintaining a good record on your credit card deal, but it doesn't mean you are protected from a credit failure. To save your reputation as a credit card holder and their money, banks (Citibank and Bank of America, for example) and credit card companies are introducing increased interest rate which is supposed to help customers avoid debt.

For some customers, it makes no difference and they can easily continue paying for their higher APR credit cards. Others, however, may find it ruining and have their credit card deal marred before taking any advantage of it whatsoever.

Let's see how lenders are reasoning their policy. They say that if you pay only the minimum a month, at the same time spending more than rational, you accumulate debt that may last for quite a long time and, what's more, can lead you to bankruptcy. The practice of low minimum payments per month has cheered Americans up to spend more and more and to make an average credit card debt of about $10,000 per home.

So, raising the interest rate on your credit card, they keep you within the limits of your expenditure and prevent you from making wasteful and unnecessary purchases. Thus, applying for a credit card today, be it a no annual fee, low interest rate or best reward credit card with instant online credit card approval, beware of possible changes on your credit card deal terms.

The increase in APR is likely to be applied to consumer credit cards, business and student credit cards, so all credit consumer categories are subject to this measure of improving credit card management.

According to the recently conducted poll, the percentage of credit consumers experiencing increase in the APR is rising and it gives results already. Some consumers are coming out of debt, paying off the fees and interest each month and some are buried further in debt. To show the inefficiency of making only the minimum payment per month, we introduce numbers. Imagine you take $ 2,000 from your Visa or MasterCard with 18 % of interest rate for the purpose of, let's say, undertaking a trip. If you stick to the habit of making only the minimum monthly payments (usually 2%), never adding up to your balance another 10 cents, it is going to take you about 30 years to return the price of the trip. As a result, you will overpay about % 5,000 in interest and isn't it ruinous?

Let's assume you make a 4-percent minimum payment on your $2,000 debt, then you are very likely to pay off your credit card debt in less than 10 years and your interest payments will make up something near $1,000. Isn't it a great cut in interest as well as a considerable saving of time?

Doesn't the increase of the minimum payments justify itself under the circumstances? It reduces the risk of destroying your credit history and serves as an additional insurance of your creditor's money.

The pressure of the federal regulators is actively instilling the policy of raising the minimum monthly payments and it is very likely to become a compulsory attribute of any credit card deal.

Share Opinion:   digg   Furl   YahooMyWeb   Propeller   Reddit   Google
Copyright © 2003-2019 All Rights Reserved strives to keep credit card information up to date and accurate. However, all the credit card information is presented without warranty and can be changed by the credit card issuers at any time. Click the "Apply online" button to see the online credit card application and to review current credit card terms and conditions. Note that can be compensated by credit card issuers when the visitors apply for a credit card through the website.
* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.
Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.
Disclosure: Not an access card.