Using Credit Responsibly
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How can I make sure my low interest card stays low interest?
Low interest credit cards are not always easy to come by, so when you do manage to get one, you need to make sure that you utilize it in such a way that you don't negate the low interest rate. Here are a few factors to consider:
- Don't pay your credit card bills late. When you're late with payment, you incur late fees and can possibly trigger interest rate increases. In addition, you can damage your credit. This can quickly turn low interest credit cards into high-interest nightmares.
- Pay off your balance every month. When you pay your credit card balance in full every month, you avoid interest--and no matter how low your interest rate is, avoiding interest is always a good idea.
- Do not accept a card with an annual fee or an inactivity fee. Annual fees are unnecessary and inactivity fees penalize you for responsible use of a credit card. There are plenty of low interest credit cards out there that don't require them.