How to Find Out Information About Credit Card Interest Rates
One of the most important things to know about your credit card is the interest rate.
The interest rate determines the amount of money the bank is going to charge you each month to have an outstanding balance on the card.
There are other fees associated with credit cards, but if you're going to be carrying a balance, the interest rate is probably the most important.
Interest rates vary all over the place.
One thing that makes them different is your credit score.
People with lower scores are going to get higher interest rates on their cards.
To understand this, think about it like insurance.
Insurance companies charge rates based on the statistical probability of someone needing to collect from the insurance company.
They want to have enough money to pay out claims, plus their profit.
In a way, credit card companies are in the same boat.
Given a person's credit score, there's a certain chance the person will default on their payments and not pay back the money they loaned them.
Not everyone is going to do this.
Not even a tenth of the people that have the cards is going to do this, but the credit card company needs to make a profit to stay in business.
So, they raise the interest rate on people with lower scores to make up for the few that are going to default.
What this means is that you'll get a better deal from the credit card company if you have a higher (better) score.
There are a ton of ways to find out about your score.
One way is to contact the three credit reporting agencies directly.
Other than the interest rate, you'll want to know if there are any fees involved with your credit card.
For that, you'll have to read the fine print carefully.
Credit card companies are notorious for "hiding" information from consumers.
It's not really hidden.
It's just tucked away inside all of the writing that comes with the card.
Make sure you read this stuff before you accept the card.
If you don't like the fees, don't accept the account.
Other things to look for in credit cards are benefits like frequent flyer miles.
If you charge a lot of stuff, you can earn quite a few miles.
The interest rate determines the amount of money the bank is going to charge you each month to have an outstanding balance on the card.
There are other fees associated with credit cards, but if you're going to be carrying a balance, the interest rate is probably the most important.
Interest rates vary all over the place.
One thing that makes them different is your credit score.
People with lower scores are going to get higher interest rates on their cards.
To understand this, think about it like insurance.
Insurance companies charge rates based on the statistical probability of someone needing to collect from the insurance company.
They want to have enough money to pay out claims, plus their profit.
In a way, credit card companies are in the same boat.
Given a person's credit score, there's a certain chance the person will default on their payments and not pay back the money they loaned them.
Not everyone is going to do this.
Not even a tenth of the people that have the cards is going to do this, but the credit card company needs to make a profit to stay in business.
So, they raise the interest rate on people with lower scores to make up for the few that are going to default.
What this means is that you'll get a better deal from the credit card company if you have a higher (better) score.
There are a ton of ways to find out about your score.
One way is to contact the three credit reporting agencies directly.
Other than the interest rate, you'll want to know if there are any fees involved with your credit card.
For that, you'll have to read the fine print carefully.
Credit card companies are notorious for "hiding" information from consumers.
It's not really hidden.
It's just tucked away inside all of the writing that comes with the card.
Make sure you read this stuff before you accept the card.
If you don't like the fees, don't accept the account.
Other things to look for in credit cards are benefits like frequent flyer miles.
If you charge a lot of stuff, you can earn quite a few miles.
