Written by Lori Godin in Credit Card
Viewed by 95 readers since 12-27-2008
Increasing interest rates are prevalent with the current state of the economy. With credit card companies increasing interest rates to recover costs of the staggering economy – how can you avoid the increasing interest rates that come with the threat of recession?
Make Payments On Time. Using the internet to pay your bills when they arrive in the mail could mean no-more missed payments. Making payments on time maintains your account as a reliable customer and therefore the bank will have no merit to increase your interest rate.
Check on Communications from the Bank. So many times we toss mail into the recycling bin before reading it, labeling it as junk mail. This correspondence from the credit card company could outline a change in your account, a change in company policy or even a notice that your interest rate is going to increase. If you are informed about the change in interest rates you can begin to research cards for a balance transfer.
Don’t Miss Payments. When credit card payments are missed, the bank has the opportunity to increase your interest rate. This could occur after even one missed payment, therefore it is important to stress that all accounts should be made on-time to each credit card.
Maintain Your Credit Rating. Did you know that credit card companies periodically check the credit rating of their customers to ensure that the interest rate being offered correlates with the level of their credit rating? Keeping your credit rating high could deter the credit card company from increasing the interest rate that you are being offered.
Pay More than the Minimum Payment. Customers that pay the minimum monthly payment take years longer to repay debts than customers that pay double or triple the minimum monthly payment. This can benefit the consumer, as a lower principal leads to a lower monthly interest rate.
Know the Terms of Your Credit Card. Knowing the terms that exist on your credit card account could mean the difference of valuable interest rates. What terms are written in the small print that allows the credit card company to raise the interest rate? Be sure to adhere to all terms and give the credit card company no reason to raise your interest rate.
Using these tips it is possible to avoid a credit card rate increase. To maintain optimal rates on your credit card, be aware of the terms included with the credit card.