Using credit card carelessly is never a good idea. It is one of the ways using which people fall under a debt, coming out from which becomes even difficult. It is will be expensive and time-consuming. Then, paying a low rate on your credit cards will stay a dream. You will just revolve around paying the higher interest rate on the outstanding balance even of your low rate credit card.
1. Pay the Outstanding amount on time
It is compulsory to pay 5% of your credit card’s outstanding amount even if you have a low rate credit card. The balance can be added in the next month. Avoid falling in this trap, as each month your balance grows bigger and bigger. You won’t know how big it has become until you are under debt. If you skip the 5% mark as well, you will be paying more interest, fines and taxes. Make complete payments on time to keep the interest lower. This way, you will be paying a low rate on credit cards.
2. Rolling over balance adds up the interest rate
If you roll over your outstanding balance to the next billing cycle, then your monthly balance will be elevated by three to four percent. Avoid making the purchases until your previous balance is cleared, this will keep the interest on your card low.
3. Make Good Use of EMIs
If the item you purchased consumed hefty amount, and you can’t pay the whole amount at once, try converting it into EMIs. EMIs come at a lower interest rate. It could be 15-25 lower than the interest on your card. Talk to your low rate credit card provider to know the options of converting the payment into easy EMIs at a lower interest rate.
Just following these three simple steps will make it easy for you to pay low rate on credit cards.
