As of February 4, 2003, the APR on credit cards has continued to rise. The current average credit card APR is 22.99%. This increase is not only because a majority of this increase is from new clients having increased credit card balances, however. Just over half of all new clients are applying for credit cards, and the average APR on these cards is as high as 29.99%, with the rest being 22%. This means that the average credit card APR has increased by approximately $6000 due to the increasing new client base.
In addition, customers who have acquired credit cards during the previous 12 months have seen their APR increase by about $2000. The interest rates on these credit cards are higher than ever, with most clients moving up to this APR.
All this makes credit cards a great opportunity to obtain money out of your pocket without charging interest to your account in any more of unpleasant ways. You shouldn’t have to deal with this kind of high APR on new clients, because they will be charged a low APR from the bank. However, anytime your credit card bill comes due, there is the option to continue paying the bill using cash instead of your credit card or check, and all you have to do is write off the payment and pay the bill in full each month.
Doing this may result in stiff penalties if you do not pay on time, and could result in having to transfer your balance from other credit cards to the new card in order to recoup the money you owe from your credit card debt. If you maintain a balance on your cards as you go along, it can be very difficult to manage your mounting debt, and with interest rates going up each month, making this even more difficult to pay for.
Credit Cards Not So Really So Helpful?
A credit card is generally a great thing to have, especially if you’re strapped with a lot of money. Unfortunately some people find they stick out like sore wounds, and therefore don’t make the best sellers of their credit cards.
The key is to choose the right kind of credit card first and foremost. One shouldn’t have to shop around for the right kind of credit card, as we’ve seen in the countless credit card offers available on the market today.
Of course, this is only a general guide as to what to look for when selecting a credit card. You can always go deeper and find a more detailed guide more easily, but the second thing to look for is how the card works. Do you need to be credited? Do you pay the bill each month? How is your payment handled? Do you hold your card? These are some of the regular questions that everyone needs to answer in order to help them out in evaluating a credit card offer.
The first thing that you’ll want to do with any credit card offer you’re interested in is get it categorized as such. There are a lot of credit cards that fall under the category of “For College or Otherwise Deceptive”. You’ll want to find out from your good experience with these cards that one is ‘not as good as they seem.’ Let’s take a look at each one, shall we?
1. 0% APR is great and it’s obviously a credit card, but it doesn’t mean that you have to hold down a credit card. For college students the 1% APR seems amazing, but that’s only if you’re going to school. For the purpose of this article just let’s ignore the ‘obsolete’ word ‘peppy.’
2. There is no other way to put $1000 in you checking account.
3. There is an optional extra $200 you can spend each month on your next purchase.
4. The $300 limit is not ‘a euphemism for death’ which we actually are!
These are just a few questions you’d want to ask yourself if you’re going to be interested in looking into any credit card offer youre putting out.
The secret to selecting and applying for credit cards is to get good at these questions before you give your all out and you end up choosing the company that best suits you.
Credit Cards Not Sure What To Do
Many people have made the mistake of thinking that everything that they purchase with their credit cards is free. They think that they have to pay anything for it to work.