Credit card rates are becoming a common problem, one we hear about more and more frequently. And it is affecting everyone – those with good credit and those with poor credit. It’s understandable to be angry and frustrated about this unexpected and severe rate hike. However it’s not wise to stop making payments altogether, as this will only hurt. The credit card company may lose $6000, but it’s your credit history and credit score that suffer. The first priority should be making a big enough payment to bring your balance under the credit limit so you stop incurring the extra charge. Then your focus should be on adjusting expenses in other areas so that you can direct more of your monthly income towards paying down this high-rate debt as quickly as possible. In the meantime, of course, don’t add additional charges to the card.

credit card rates

Credit card rates are typically broken into two categories: Card present (where the card is physically swiped through a credit card terminal) the lowest rates are typically applied to card-present transactions. Card not present (any type of transaction where the card cannot be swiped) this type of transaction is also referred to as moto (mail order/telephone order). All transactions where a credit card is not physically swiped through a terminal, including internet transactions, phone transactions, or credit-card numbers keyed into a terminal, fall into this category. The rate for each credit card transaction type is determined by both the kind of card used, the way it is processed, and the time it takes the merchant to batch the transactions for processing. It is important to know whether you do mostly card present or card not present transaction when selecting a plan type, because card not present charges are significantly higher than card present.

Good credit card rates are generally reserved for those who have a proven history of handling their debt obligations in a timely manner and who are not already carrying too high of a debt load. If you want the best possible rate deals, you need to be the best possible kind of customer. When you’re looking for a new credit card, be cognizant of the interest rates. Make the issue a key component of your selection. Look for special low introductory rates and other bargains including low interest rates on balance transfers from other cards. Although you’ll want to take the time to read the fine print (you want to be certain that you’ll qualify for those rates and their limitations), this can be a great way of decreasing your interest exposure.

Another related article: Visa Cards