How to Maintain a Low Interest Rate on Your Unsecured Credit Card

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How to Maintain a Low Interest Rate on Your Unsecured Credit Card


In this post, we’ll consider pointers you can use to continuously enjoy a low rate of interest on your unsecured card program.

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Keep up with your due dates. Always remember that delinquent cardholders are not only penalized with huge late payment penalties and surcharges. Most of them also have to settle for higher interest rates than what were originally imposed on their lines of credit. So, if you wish to maintain a low rate of interest on your credit card program, it would be best to stick to your payment schedule. Set up personal reminders and alerts in your mobile gadgets so that you’ll remember when your credit card bills are due. Better yet, you can sign up for automatic payment arrangements with your bank. After all, with such program, you won’t have to worry about missing out or defaulting on your credit payments, ever again. WWW.NEWHORIZON.ORG


Settle your unsecured credit card bills completely. Paying just the minimum amount required by your card issuer and carrying balance from one month to the next will surely cause your interest charges to balloon out. And in time, your credit payments might eat up a significant percentage of your monthly budget. This means that if you wish to keep your monthly payments at a minimum, you should resolve to pay your credit card charges, not just on-time, but also in full. WWW.NEWHORIZON.ORG


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Always abide by the terms and conditions of your card program. Another reason why cardholders suffer from extremely high interest rates is because they committed serious violations against their credit agreements. For instance, they might have abused the cash advance facilities of their unsecured credit cards for bad credit, withdrawn huge sums of money using ATM’s of banks and credit firms that are not affiliated with their card issuers or maxed out their lines of credit. Now, if you wish to keep your interest rate low, we suggest that you steer away from these poor credit habits. Instead, we encourage you to always comply with the stipulations of your contract. By doing so, you will not just enjoy a low interest rate on your unsecured credit card, for a long time. You can also avoid incurring pesky fines and penalties which might ruin your personal or household budget.


Limit the credit card applications you submit. Keep in mind that your credit score drops each time your credit report gets pulled out in response to a credit application. And if your card issuer finds out about your low score, he/she might soon decide to increase the rate of interest imposed on your line of credit. So, if you wish to avoid this chain of events, it would be best to limit the credit card or loan applications you submit, especially when you’re already managing unsecured credit cards for bad credit. Content yourself with what you have and resolve to sign up for additional lines of credit ONLY WHEN IT IS ABSOLUTELY NECESSARY. WWW.NEWHORIZON.ORG


Watch out for errors in your billing statements and in your annual credit report. Incorrect payment entries, outdated accounts, and fraudulent charges can also inflict damage on your credit history, pull down your score and cause your interest rates to rise. So make sure that your monthly billing statements and credit reports are free from these items. And in case you discover an error on your monthly bills as well as on the latest copies of your annual credit report, immediately dispute it by writing and sending credit dispute letters to the three major credit bureaus. WWW.NEWHORIZON.ORG


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