Credit Card
Posted on: January 18, 2007
- In: Business | Information | Philippines
- 2 Comments
Ever wonder why your credit card balance is moving up and having a higher interest rate than your expected 3.5% ? At first it is my understanding that whenever I pay the minimum amount I am on the good position but later I found out that paying the minimum amount gives extra income with the credit company. It goes like this
Whenever you pay for on Minimum Amount it only means that you have a balance credit so the Credit company will put some interest on it. The sad part is the moment you use your card while you have your balance it automatically increase some interest on the same day ( Nope you don’t have to wait for the deadline before it gives interest ) The computation will be like this
Balance x Interest = Previous Balance
Purchase amount X Interest = New Purchase
Previous Balance + New Purchase + Credit Shield = Billing Amount
Have you not seen that the percentage interest is higher than the 3.5% that they have promised . It is higher because of the above explanation. Try not to use your card within One month and the bank will give you only 3.5% Interest + Credit Shield.
Hopes this help to present Credit Card Users. I am using my card for about 8 years and it is only late last 3 months ago that I notice this. So be wise on using your Credit Card.
2 Responses to "Credit Card"
January 18, 2007 at 3:10 pm
Thanks for the comment Tingting I pray to God to give me more blessings to be debt free by april. Tired of paying interest
An Expression of Myself 
January 18, 2007 at 2:25 pm
Been there, done that. I am glad that 2007 is debt-free for me. I terminated by credit card just last month. I may feel poor at times, but the feeling of having not to worry about credit card payment is more relaxing.