Credit Without Penalty - Monitoring Your Grace Period

Credit cards have a time period in which you can pay off your balance without being charged interest. This is called a grace period. The grace period on most cards is 25 days, while other cards have shorter grace periods. Pay attention to your grace period to avoid penalties, fees, and higher APR.

Some cards offer low interest rates, but have annual charges. Others have no annual charges, no fees for cash advances, yearly account summaries, purchase security, insurance protection plans, a 25-day grace period, credit up to $35 000 and fixed rates as low as 9.9%. This is one of the better deals to be found, and you can apply for these cards on a secure site. Other cards offer APR up to 14.9% and some have only a 20-day grace period.

When you are applying for major credit cards online, it is important to consider whether it offers a fixed rate APR. Unlike variable rate cards, interest on fixed rate cards rarely changes. If interest rates do change the card provider must let you know in advance. Variable rates cards can change rates at any time, and providers need not inform you of changes beforehand. You may also want to check out tier rate cards, though few companies offer this option.

It is important and a credit essential to understand and monitor your grace period, since this helps determine how much you will pay each month. You may make a purchase of $150 but if you carry a balance beyond your grace period, you will end up paying a lot more.

Many card providers calculate your APR every day. In this case, if your card has a 9.9% APR and your purchase is $150, you could pay $170 or more the following month by missing your grace period.

Go online and search for the best deals when applying for a credit card. Apply only with reputable companies, as many credit providers will scam their clients.

Not long ago several credit card companies were sued for illegally adding charges that they should not have. You must protect your self by investigating thoroughly before you sign agreements. Once you have your card, monitor your statements carefully. Even reputable companies will concoct evil plans to maximize their profits.

If you have a bad credit history be sure you watch the activities of your creditors. Your company is obligated to update your status with the credit bureaus twice a year. If you have made the necessary payments for six straight months your credit status should improve. Some companies, however, can be negligent in making their reports. Ensure that your good behavior is reported and rewarded. This is important when rebuilding your credit.

Only use your card when you need it, especially if you have bad credit. If possible, pay all of your bills on time. Use your credit card to avoid utility shut-offs, but if you have low-income status you may qualify for state support. Explore your options before using your credit card.