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Interest Rate Credit Cards

Oh brother, another credit card pitch. Do these things ever stop filling up the mailbox?! Well, the shortest answer I can give is NO. In reality we all receive credit card pitches week after week. Some extreme cases have them daily. They just won't stop vying for our business, finding all sorts of means to empty our pockets. The funny part is when it comes to balance transfers. They are typically low interest rate credit cards. On the other hand, when it comes to purchases, they are commonly high. Why is that? Go figure! I'd say they are trying to lure you in. Maybe you currently have a credit card with a horrible percentage rate and you'd like to transfer your balance and resolve the credit card debt issue. Well, here's your big chance. Not only can you lower the APR, but the interest rate is suddenly 0 percent. Well, for the first year anyway. After that first 12 months are up, all bets are off.

I've had a total of two credit cards in my life. Both were MasterCard, and both hooked me with the low 0 APR on balance transfers. I honestly wished this lasted for longer than a year. Whether you're dealing with student loans, car costs, or other credit cards, that 0 balance transfer can start looking awesome. Now, the question is, will you pay the balance off before your year is up? Most people do not. That's not the way the routine works and credit card companies count on it. But, what about high interest rate credit cards? Who in the world goes for these? I'll tell you exactly who. Young folks with no credit. Teenagers and college students, who want a Banana Republic card, because they lack any decent amount of cash. This is totally understandable. We've all been there, empty pockets with nothing to lose. Well, most of us have been there anyway. I can't speak on behalf of the trust fund kids.

Why should you steer clear of high interest rate credit cards? For the obvious reasons. The interest each month will kill you. You probably intend on using the card regularly, because you don't have much spending money in the first place, and we both know you won't pay it off every month. This is why you should avoid high interest rate credit cards in your entire life. That 22 percent APR on purchases will bleed you dry. Suddenly you have three grand on your card and the interest alone is too much for you to afford. Take the path less chosen. Don't spend beyond your means.

0 interest rate credit cards are hard to come by. If you found one, you're lucky. As with anything else in the world, there is always a cause and effect. Overspending will lead you steep into credit card debt which some people will take over 10 years just to get out of debt.

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