Hi there,
The best part of having a credit card is that you can buy something today and pay for it later with a credit card. But the simplicity of paying over time, however, may come at a price. If you don't pay off your debt within a few weeks, you'll be charged a finance charge, which raises the cost of having a credit card. The longer it takes you to pay off your balance, the more finance costs you'll incur. So, it is very crucial to know
how to reduce finance charge credit card.
Almost all credit cards include finance costs that can be avoided, but it all depends on the timing and quantity of your credit card payment.
Reduce your finance charges and also earn hefty cashback by paying your utility bills on NoBroker.How to reduce finance charges on credit cards?
Pay down your balances: Compound interest is used in credit card interest rates. This means that at the end of each billing cycle, interest is levied on interest. Any unpaid balance on the card that is carried over to the following billing cycle will incur a higher interest rate. And that interest rate is applied to a balance on which you have already paid interest in the previous month.
Pay attention to the rate charged: Rate increases are announced in the mail by credit card firms. Make sure you read the letter, and if you're charged a higher rate, call the credit card company to find out why the rate is being raised, and what you can do to avoid the increase.
Read your statement carefully: If a charge appears to be suspicious, contact the issuer immediately. It is quite difficult to get charges removed if they have been on your account for more than 30 days, according to the article on the five proven strategies to lower finance costs.
Use Credit Card: If you pay your account balance in whole and on time, you will create good credit. You can apply for a credit increase or a lower interest rate if you have a solid account history with the card issuer.
Investigate credit card balance transfers: If you have a high-interest credit card, look into the many balance transfer deals available. Depending on the offer to transfer your amount to a lower rate card, you could reduce your interest rate from 21% or more to less than 10%.
These are the 5 most cost-effective ways to reduce finance charge credit card. I hope you find this helpful.
Read More: How to Transfer Money from Credit Card to Bank Account? How does Credit Card EMI Work?Your Feedback Matters! How was this Answer?
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Authors Of The Question
How to Reduce Finance Charges on Credit Cards?
Cecil Fernandis
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2 Year
2022-05-17T15:46:30+00:00 2022-05-17T15:46:31+00:00Comment
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