How to Avoid Credit Cards Finance Charges
Credit cards are a convenient way to purchase what you want when you want it, even without taking cash on hand.
Credit card companies profits from customers who use the balances on their credit cards by charging interest rates, and finance charges on top of the interest, as well
1. Make detailed budget of your income and expenses. You can avoid finance charges by keeping a tab on how much money you have afford every month to pay your credit cards.
2. Make a priority of your payments to your credit cards according to each card’s interest rates and the total balances due. The higher the interest rate, the higher the amount of money you should allocate for that card to avoid the biggest finance charges from being posted.
3. Pay the bills on your credit card on or before the due date, thus allowing time for your payment to be posted. You can avoid financial charges by scheduling payments or sending payments in advance.
4. Call your credit card company to request about waiving your finance charges. They may be willing to remove the charges if you have a good credit history with the company.
5. Try transferring your credit card balances to another credit card that offers no interest rate. To avoid incurring finance charges, apply for a new card that offers 0% interest rate promotions on balance transfers then transfer the remaining balance from the old credit card to the new credit card. Be sure to check your current credit card for promotional rates as well to see if there’s any other option.
Tips & Warnings
* Several credit card companies place a balance transfer fee. Try to balance cost-effectiveness of your options because the finance charges might be cheaper than the transfer fee.
* When you transfer remaining balances to a new credit card with a 0% promotional rate, make dure you pay on time and determine the promotion’s expiration to maybe transfer again before it expires because some credit card issuers ask for payment for the interest that you got within the promotional period.
VIA eHow
Keyword: Credit card
Credit cards are a convenient way to purchase what you want when you want it, even without taking cash on hand.
Credit card companies profits from customers who use the balances on their credit cards by charging interest rates, and finance charges on top of the interest, as well
1. Make detailed budget of your income and expenses. You can avoid finance charges by keeping a tab on how much money you have afford every month to pay your credit cards.
2. Make a priority of your payments to your credit cards according to each card’s interest rates and the total balances due. The higher the interest rate, the higher the amount of money you should allocate for that card to avoid the biggest finance charges from being posted.
3. Pay the bills on your credit card on or before the due date, thus allowing time for your payment to be posted. You can avoid financial charges by scheduling payments or sending payments in advance.
4. Call your credit card company to request about waiving your finance charges. They may be willing to remove the charges if you have a good credit history with the company.
5. Try transferring your credit card balances to another credit card that offers no interest rate. To avoid incurring finance charges, apply for a new card that offers 0% interest rate promotions on balance transfers then transfer the remaining balance from the old credit card to the new credit card. Be sure to check your current credit card for promotional rates as well to see if there’s any other option.
Tips & Warnings
* Several credit card companies place a balance transfer fee. Try to balance cost-effectiveness of your options because the finance charges might be cheaper than the transfer fee.
* When you transfer remaining balances to a new credit card with a 0% promotional rate, make dure you pay on time and determine the promotion’s expiration to maybe transfer again before it expires because some credit card issuers ask for payment for the interest that you got within the promotional period.
VIA eHow
Keyword: Credit card
