When you first get involved with credit cards, most of us are very young and impressionable. One of the worst things about these first cards is that they are very shiny and usually with really low interest rates…until you submit your first late payment. When we first get credit cards; it happens, we all do it; we will invariably miss a payment or payment due date. Then our shiny, wonderful, low interest rate credit cards become high interest rate credit cards overnight.
When you first begin with credit you should be forced to have these high interest rate credit cards at the outset and then be able to earn your way back to these much more favorable credit vehicles.
Whatever your opinion of the way the credit cards are issued; they are as they are.
High interest credit cards, what you need to know
Your Rates Are Negotiable: If you fall into a bad place for a while and work your way up to having a high interest credit card again; despite your best intentions; you can still talk your way back down to a more favorable interest rate. Study your statements and then give your credit providers a call to see about getting those high interest rate credit cards rates lowered. Most credit providers are willing to hear you and offer you some kind of relief. They would rather have a happy customer using their credit cards than an angry one who is not.
Rates Are Only As High As Your Balance: Another interesting development is that your interest rates are not firmly settled to drive you to tears every month. In fact your high interest rate credit cards are only going to be horridly high if your card balance is high. If your high interest rate credit cards balance is $0 (if you pay your balance OFF every month) then your cards interest rate won’t bother you, because you’ll be paying zero as well.
You Don’t Have to Take Them: Another thing about these credit cards with sky-high interest rates; you don’t have to activate these cards. If a card is sent to you and you are not comfortable with the amount of interest you would be charged and you have called and they have stonewalled you then you don’t have to activate the card.
Credit is a great tool when used well.
Image Courtesy of www.responsiblelending.org