Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Getting Your First Credit Card: a Few Tips to Keep Interest Rates Down

By Tyler Subscribe to RSS | March 21st 2012 | Views:
loading
 
  



If you are a young adult, chances are that you may be thinking of getting your first credit card. Such banking devices are some of the most powerful financial tools for people, since they give them more purchasing power. However, you always need to know how to use these cards properly before you apply for one. Of course, this is not a prerequisite to getting one. Most banks will give you the card you need without first finding out if you know how to use it properly or how it works. This is the main reason why quite a number of people have trouble with their credit card companies at least once in their lifetime.

One of the most important things you need to keep in mind about credit cards is the credit card interest rates. When you use a credit card to buy anything, you would essentially be borrowing money from the credit card company. When you swipe your card at a point of sale or use it to withdraw money at an ATM machine, the money is transferred from the credit card company's account instead of from your own. This means that this money can be thought of as a loan, and you would have to pay interest on it when you pay your credit card bill.

Different credit card companies charge different credit card interest rates, and it is also common to find that two people using the same bank and credit card company will have different rates. This is because banks use a very complex system to determine how much interest you will pay when you apply for the credit card; it is usually not a standard figure. To make matters even more complex, your interest rate will be adjusted by the bank from time to time according to a number of things.

One of the criteria that the banks use to determine adjustment of your credit card interest rate is your risk profile. If you are the kind of person who pays all his bills on time, your credit card company will see you as less of a risk and would then charge you the minimum interest rate. However, in order for this to happen, it has to be demonstrated over a long period of time that you are capable of paying your credit card bills on time; you should not miss even a single payment.

When you form a habit of delaying on your payments or not paying the full sum, your credit card company will always adjust your interest rate to match your perceived risk to the bank. This usually also makes it hard for you to get an increase in the maximum limit on the credit card. Therefore, one of the things that you may have to keep in mind before getting your card is that in order for you to pay less to use it, you have to pay your bills on time. One of the ways of doing this may be to limit the use of your credit card so as to ensure that the bill is always manageable.

Tyler - About Author:
Credit card interest is not a negligible sum so do be aware of the high interest you are chalking up the next time you waive your plastic too easily!

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/loans-articles/getting-your-first-credit-card-a-few-tips-to-keep-interest-rates-down.htm

Related Loans Articles Subscribe to RSS

Apply online for bad credit installment loan- Easy financial help available online
Published by Bailey Molton on July 12th 2012 | Loans
If you are availing quick funds via installment loan, you will be getting rid of financial hurdles a...
 
Tenant loan a fresh means to obtain back on front-foot
Published by Steve Matthew on May 10th 2012 | Loans
Tenant Loan there is a better amazement of corrupted individual as they can better their poor credi...
 
6 month loan- Monetary support with easy repayment
Published by Aldis Roy on January 11th 2012 | Loans
By getting fund via 6 month loan, you can maintain your lifestyle and utilize money for daily needs....
 
Without proper student loan help defaulters might be in a mess
Published by Peter Paul on December 15th 2011 | Finance
Default of student loans might cause immense problems in the life of a student. At times, things mig...
 
90 day installment loans bad credit- Batter loan option for you!
Published by Galvin Colton on June 26th 2012 | Loans
By 90 day installment loans bad credit scheme, you will obtain instant funds up to $1500. So, you ca...
 
Checking account loans- Easy loan available widely online
Published by Morgan Sadyu on May 23rd 2012 | Loans
Now, checking account loans is a great fiscal support available online. The funds can be useful to m...
 
Instant loan- Financial solution to meet unexpected cash crisis
Published by Aden Jon on June 12th 2012 | Loans
Get quick cash via instant loan in order to combat against unexpected financial hurdles now!...
 
90 day loan- Reliable and perfect choice of financial help for everyone
Published by Thoms Stuart on June 22nd 2012 | Loans
By acquiring quick cash with the aid of 90 day loan, you will get instant funds up to $1500. This is...
 
Military payday loans no credit check- Right form of loan for military people
Published by Jon Kohli on May 28th 2012 | Loans
With the help of military payday loans no credit check, it is possible for you to arrange financial ...
 
Same day cash loans- worthwhile loan for bad credit people too
Published by Jelsan Smith on May 14th 2012 | Loans
By availing quick cash via same day cash loans, you have the provision to meet unexpected fiscal wor...
 
Check into cash payday loans- the best loan deal for tough times
Published by Riyt Leson on July 24th 2012 | Loans
By taking quick funds via check into cash payday loans, you can easily get rid of any kind of financ...
 
2500 loan - Credits for the unavoidable expenses
Published by Perter Clove on December 1st 2011 | Loans
2500 loans provides instant funds without concerning about your past credit history. Its online serv...
 
Ten dollar payday loan- Easy to get approval and quick cash
Published by Addison Maddy on July 2nd 2012 | Loans
If you are taking small funds from ten dollar payday loan, you have the chance to meet small financi...
 
3 month loan: Complete Any Requirement Now
Published by Kelse Roy on March 15th 2012 | Loans
3 month loan deal is the excellent way to arrange finance for any cash casualty and you would solve ...
 
Fast payout loans-Quick loan service for your needs
Published by Onner Smith on December 6th 2011 | Loans
If you just want to eradicate urgency then it is better for you to avail fast payout loans. This loa...
 
Assistance from expert should be sought for default student loan assistance
Published by Michelsmith on December 8th 2011 | Finance
Defaulting student loans might affect the life of a student in an adverse way. When the situation ge...
 
Secured loan in UK: are an inexpensive economic result
Published by Ian Foster on November 29th 2011 | Loans
Secured loans in UK can be availed by presenting safety beside loan amount and most of the lenders p...
 
Payday loans with no bank account: Kick out Your Small Fiscal Crunches
Published by Calvien Peter on November 29th 2011 | Loans
If you are having no bank statement, enjoy payday loans with no bank account as per your requirement...
 
2 month loan: Crack Money Deal for 2 Months
Published by Kelse Roy on April 5th 2012 | Loans
2 month loan is a deal that offers small term cash with affordable interest rate along with monthly ...
 
US payday loan services- Fast service to offer quick cash
Published by Adam Felix on May 21st 2012 | Loans
With the aid of US payday loan services, everyone is capable to avail quick cash without any hassle....