Pay Credit Card On Time PDF Print E-mail

Making your debt payments on time is one of the most important factors that contributes to your credit score. It also has a direct, and immediate effect on the interest rates you pay on much if not all of your credit debt.

Read the fine print of your credit card agreement. Without exception, somewhere in the agreement you will find a paragraph about the Default APR. In it, you will be informed that if you are late on this or any other credit card payment, you could be subject to losing any promotional status and all balances could convert to the Default APR.

What is the Default APR?

The Default APR is the rate given to customers who have made one or more late payments. The Default APR is often considerably higher than the interest rate for customers who make on time payments. The Default APR in some cases could be as high as 30% or more (depending on state regulations).

The thing to keep in mind is that the creditor has the right to increase your rate to the Default APR even if you have always been on time paying them. If you pay one credit bill late, even if to another creditor, the credit card company has the right to consider you a higher risk and that late payment could be an indicator of future performance paying other bills. Thus, be late on one credit card bill, and you could suffer consequences with all of them.

This is just one further reason why it is important to at least pay the minimum payments on time. Not only will late payments hurt your credit score, but they will cost you dearly in late payment fees and interest rate increases.

Credit Card Sponsored Search Results.

 
Home Equity News was created by Maxwell Sydney Design Group