Look At Credit Card APR And More
Everyone dreams about a credit card APRof zero interest or low interest. With no fees. Come on, you know you do. But getting the best interest rates and the lowest fees is a privilege reserved for the elite with high credit scores. So, is there ever a time when having a high interest credit card, or a card with high fees, is worth it? Well, we can think of three.
-
Having a credit card can improve your credit.
Having a credit card, as long as you use it responsibly and don’t have too many of them, can help you build or rebuild your credit. That’s pretty important. When you have a better score you can get, well, better rates on future cards. But also on mortgages, cars and more. So paying a little higher interest now might be worth it to improve your credit in the long run.
-
Cash back rewards can add up.
Today, many credit cards – even those with high interest and fees – offer you cash back rewards. Sometimes those rewards are just 1%, not a huge incentive if you are paying 14% interest. But sometimes these rewards and rebates can be up to 5%. If you need to build your credit and a high interest card is the best you can do right now then at least a good rewards program might help you to recoup some of those interest fees. The same is true of credit card airline miles with no annual fee – even if you pay interest it may be worth it if you rack up a lot of miles and you are a heavy traveler. You may want to consider those cash back credit card offers and airline mile cards!
-
You can start high and upgrade low – oxymoron?
If your credit is not that great and you are stuck with a high interest card, take heart. While it starts out high you may be able to upgrade to a lower interest card after a few months or a year. Use your card well, build your credit, and then apply for a better, low interest card.
If you are stuck with a credit card APR that is high interest or high fees don’t be discouraged. Here are two ways to make the most of it:
-
Keep You Balance Low
If you have a high interest credit card then keep your balance low so that you don’t pay much interest. And remember, you only pay interest if you have a balance on your card after the grace period on new purchases expires. So, pay the balance off in full each month and you won’t pay a penny in interest.
-
Negotiate a Lower Credit Card APR, if You Can
Sometimes you can negotiate a lower credit card APR rate on your current card. Really. If you’ve been a good customer, paying on time, staying under your credit limit, call your credit card company and ask them to lower your interest rate. Many times they will do it – all it costs you to try is a 10 minute phone call. While you are at it, remember that many credit card companies will also remove late fees and other fees, at least once a year, if you call and ask. Always be polite, ask very specifically for what you want, and sometimes you will find the old adage is true, “Ask and ye shall receive.”
Copyright © 2014 Credit Cards . All rights reserved.
Advertiser Disclosure: The credit card offers that appear on CreditCardIdeas.com are from credit card companies from which this site receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers.
Editorial Disclosure: The editorial content on CreditCardIdeas.com is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.