So you just opened an envelope that contained a shiny piece of plastic with your name on it. Awesome … a bank or financial institution just gave you a line of credit! Before you start joyously swiping it on just about any cash register, take the time to read this article to understand the credit card interest rates.
A credit card is an authority to spend the money of the company that issued it, in return for a promise that you will repay them in the future, called payment-due date. This date is written on your card’s monthly billing statement together with the total cost of the items you purchased for that month (outstanding balance). Smart credit card users pay for the total outstanding balance on the payment due date. However, there maybe instances that you will not be able to. During these times, the card company let’s you borrow the money longer, until the next month’s payment-due date, for a fee. This fee is calculated based on the credit card’s interest rate.
Today when everything is just a click away, owning a credit card or two is nothing knew. Plastic cards have replaced paper money. Why it’s very convenient! You don’t have to worry about running out of cash every time you go shopping. Spending time counting pennies or loose change is no longer a problem. Credit cards have made life easier for every consumer.
Visa is the most common credit card in the market with more than one billion users. It is also the first credit card known to everybody since its debut in 1976.
What can you do with your Visa Credit Card?
With credit cards dominating the market world today, even college students are already prospective clients of most credit card companies. This is because studies have revealed that most college students have difficulty in maintaining their expenses especially to those who are far way from home. That is why credit card nowadays had been a “must-have” for most college students.
Basically, college credit cards do not differ that much to ordinary credit cards. In fact, college credit cards are classified as secured credit cards because students do not have any credit history that will enable them to get a regular credit card.
But the fact remains them. Why would credit card companies be willing to provide college students with credit cards where in fact there is no basis where they can tell whether the student is capable of paying or not.
For two reasons, the credit card companies see a greater opportunity in them. One, survey shows that most college students remain loyal to their credit card company even after they have graduated from college and got have their work.
Second, reports show that college students are actually good customers. Most of them really do pay on time. Moreover, their balances tend to provide workable income to the credit card company.
When choosing a credit card, the interest rate should be the first thing to consider. Low interest rates only mean one thing: more savings! The bigger the balance of the account, the bigger sum of money will be saved. As more money gets saved, more money gets stored and more interests will roll in the bank account.
Other credit cards companies have reasonable interest rates and offers more like giving the percentage of money back. The more money spent on credit, more money will be returned to the card’s user. Most credit cards use 5% on special purchases and 1% on regular purchases.
Some banks give “Reward Points.” These “Reward Points” accumulate as the credit card is used and it may be exchanged for certain items catalogued by the bank. Points may be exchanged for microwaves, cell phones, televisions and the like. This is yet another great feature to be considered when looking for a card.
A number of major banks offer low interest rates. A few major banks would be: Citibank, American express and JP Morgan Chase. These banks are known to give 0% introductory APR (Annual Percentage Rate) for 12 months. Most of these cards offer no annual rates.
Today’s consumers want the least possible hassle, processing time and related fees when they make credit card applications.
One question that immediately comes to mind is acceptance. Credit card applicants generally should not worry if they comply with all the requirements set by their card issuer. Some of the things that are checked include income ranges, age and current addresses. For potential owners who have moved, they must make sure that they indicate correct information on their previous place of residence, including when and how long they stayed at their former address.
Individuals who want no fuss credit card application should expect to have their credit ratings given a thorough review. This review will be conducted by issuers to establish if the applicant poses any risk. Such a check will include the individual’s ability to remain consistent with monthly rental payments or repayments and mortgage or loan profiles. An application with a history of financially troubles will have problems having their applications processed, as this issue will have an impact on their credit rating.
Credit card providers will also check details such as delayed payments on recent or previous cards, utility bills or loans, and the number of rejected applications, if any. Companies can also probe deeper to the extent that they check the electoral register to verify an applicant’s addresses and even the county court to find any judgments against or records on the individual.
Credit card applicants should realize that low interest providers are more likely to impose a higher number of restrictions and possibly accept only individuals with perfect credit histories. In such cases, the more likely option is for an applicant to consider cards with higher rates.
Since borrowing entails charges, a credit card applicant should make an exhaustive review of all terms and conditions related to their application, preferably across different credit or charge cards. Among the key terms potential card owners must consider are the annual percentage rate, the free or grace period, transaction and annual fees, and adjusted and previous balances.
Some individuals on pre-approved status will have their credit card application mailed at home, reflecting an attempt by the issue to verify that they have the right applicant. Other options that have made credit card applications more convenient are telephone and internet-based processing. As a security measure, applicants should exercise extreme caution in providing their social security number and other personal information.
