Friday, March 13, 2009

Interesting information about credit card rates !!!!!!!!!

As I am availing a credit card so I can tell you something about it. Besically I have a question to all of you that when you are going to take a credit card what major thing you need to keep in your mind? I think I know the answer & it is credit card interest rate.

We all try to take that credit card after searching the entire market where the interest rate is low. I think this is the most important thing which we need to consider. But a proper understanding of credit card rates is even more important.

By the way first of all we need to know what is credit card rate? Very simple, credit card rate is the rate of interest that the credit card supplier will charge you with on the amount you owe them. The credit card providing company will charge an interest if you are not paying the required amount with in time.

After getting the bill from the credit cards providing company you may find that you need to pay a purticular amount which you have used from that company to avoid any late fees or any extra charges.

Here you will get option if you will make the full payment with in the due date then there is no need to pay any interest.

But, if you will not pay the full amount then the credit card providing company will charge an interest on that pending amount.

You have to decide the credit card interst rate with your credit card providing company at the time of taking credit card.

This above calculation process will be applicable to calculate your interest rate. The credit card suppliers use this annual credit card rate to calculate the monthly credit card rate and then they calculate the interest on the balance amount that you owe them. The balance amount here is simply = Full amount - (payment made by you).

Your payable interest will be added with your coming month bill. And this cycle will continue until you make the full payment

So, this is the way to calculate your credit card rates. If you have any questions or suggestions regarding this feel free to mail me or you may ask me through comment below. Soon I will reply you back with your information.

1 comment:

Chris Burgoyne said...

That 2nd picture looks really dodgy.
Frank @ Secured Loans