What Happens to My Credit Card Rate If I Miss a Payment (cont.)
Contributed by Melanie Vannuys
How Can I Avoid Paying A Higher Credit Card Rate?
If you are paying attention you shouldn't have to worry really. As stated earlier, be sure to read your credit card agreement thoroughly before you use your card for the first time. Next, don't spend more than you are currently making. In other words, live within your means. If you must use your credit card, make sure you don't charge anymore than you can pay off at the end of the month.
A good rule of thumb to live by - if you can't pay for it in cash now, chances are you won't have the cash to pay the bill at the end of the month either. Don't confuse your "wants" with your "needs." It can cost you dearly. Always try to pay off your balance each month. Once you start carrying a balance on a regular basis, you start to lose control of your financial well-being.
What Do I Do If I Have A High Credit Card Rate?
If you have had poor credit in the past and the only card you could qualify for is one with higher interest rates, don't despair. If you establish a good payment history with your card, for six months to a year, chances are one of two things will happen. The card company will offer to lower your interest rate slightly, or, you are certainly within your consumer rights to call the card company and try to negotiate your rate. If they won't lower your rate, tell them you're going to switch to another card and watch them squirm!
